THE SEASHELL OF LISSON GROVE LTD AND ORS V AVIVA INSURANCE LTD AND ORS

[2011] EWHC 1761 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 1 November 2011

Insurance (Property) - Effect of clause limiting insurers' right to rely on breach of warranty - Effect of Non-Invalidation Clause

The Seashell was a fish and chip restaurant in London. It was insured under a Restaurant Policy and a Property Policy. The premises were damaged by fire. The court ruled, on preliminary issues, that: (a) the terms of the warranty clause in the Restaurant Policy allowed the assured to recover for any part of a loss which was not wholly or partly due to breach of warranty; (b) the Non-Invalidation Clause in the Restaurant Policy applied to breach of warranty, so that the insurers could not rely upon it to refuse a claim to the extent that the assured was not aware of any increase of risk; and (c) the Non-Invalidation Clause in the Property Policy applied to non-disclosure and breach of warranty.