DELANEY V PICKETT AND ANOTHER

[2011] EWCA Civ 1532, Court of Appeal, Lord Justice Ward, Lord Justice Richards and Lord Justice Tomlinson, 21 December 2011

Insurance (motor) - Passenger injured in course of transporting cannabis - Whether claim against driver precluded by public policy - Whether Motor Insurers' Bureau required to make payment - Untraced Drivers Agreement 1999, clause 6

The claimant was seriously injured in a motor vehicle accident while being carried as a passenger by the defendant. At the time of the accident both were in possession of small quantities of cannabis. The defendant's insurers avoided the policy for non-disclosure, and in the present proceedings the claimant sued the defendant for negligence and argued that the Motor Insurers' Bureau was liable to pay the damages awarded under the Untraced Drivers Agreement 1999. The MIB argued that the claimant was precluded by public policy from bringing proceedings against the defendant and, even if that was wrong, the MIB was discharged from liability under clause 6(1)(e)(ii), namely that "the vehicle was being used in the course or furtherance of a crime". The Court of Appeal held unanimously that the claimant was not barred by public policy from obtaining judgment against the defendant, as the illegality was merely incidental to the claim and injury. However, by a 2:1 majority the Court of Appeal held that clause 6(1)(e)(ii) gave rise to a defence to the MIB, as there was no basis for confining it to serious crimes.