Cooperation with insurers

In Shinedean Ltd v (1) Alldown Demolition (London) Ltd (2) AXA Insurance UK plc [2005] EWHC 2319 (TCC) HHJ Richard Havery QC cast doubt on the efficacy of claims cooperation clauses, the Court holding that a clause which did not impose time limits for compliance was not broken until the point at which the delay had become unreasonable, tested by the degree of prejudice suffered by the insurers. The Court of Appeal ([2006] EWCA Civ 939) has overturned this reasoning, undoubtedly to the relief of underwriters generally.