Subrogation meaning

Insurance & Reinsurance weekly highlights—18 January 2024 In this issue: Ukraine conflict Coronavirus (COVID-19) Cases and decisions Types of insurance Market practice Regulation Solvency II New and updated content Case trackers Key dates Daily and weekly news alerts LexTalk®Insurance: a Lexis®Nexis community Ukraine conflict This week, Scottish practice Brodies LLP confirmed it had supported Ukraine’s Export Credit Agency on an innovative war risks insurance mechanism, extending protection to shipowners and charterers and enabling the nation to move cargo across the Black Sea amid ongoing hostilities with Russia. See News Analysis: Brodies steers war risk insurance for Ukrainian exports. The conflict in Ukraine has profoundly reshaped the aviation insurance sector. Claims on aviation policies have become a central battleground as lessors try to recoup losses for aircraft left in Russia (typically still held and operated by Russian carriers). Consequently, a wave of proceedings has been commenced before the English, US, and Irish...

Republic of India v Société CC/Devas (Mauritius) Ltd, Société Devas Employees Mauritius Private Ltd and Société Telcom Devas Mauritius Ltd, Paris Court of Appeal, 10 September 2024, Nos 24/00151 and 24/00152 What are the practical implications of this case? The key practical takeaways of these decisions are as follows. Under French law, third-party joinders are not permitted in annulment or enforcement proceedings concerning arbitral awards, unless the arbitration agreement expressly authorises them. As a result, those who subsequently obtain an interest in enforcement—such as third-party funders or other assignees—cannot participate throughout all phases of the enforcement process. Therefore, investors aiming to monetise and enforce arbitral awards should closely review the language of the underlying arbitration agreement, or any relevant treaties, before accepting a simple assignment of award-related rights. A wiser course for such investors is to obtain subrogation to the assignor’s rights...

Dassault Aviation SA v Mitsui Sumitomo Insurance Co Ltd [2024] EWCA Civ 5 What are the practical implications of this case? This decision will interest anyone concerned with the canons of contractual construction. Those who draft or advise on non-assignment clauses will find it especially pertinent. Where an absolute bar on assignment is intended, wording must be explicit and unambiguous. Accordingly, drafters seeking to preclude transfers must choose language that leaves no room for implication. In Dassault Aviation, the Court of Appeal confirmed that it is inadequate to contend that a party should have appreciated, or in fact did appreciate, that assignment was a likely result of its conduct where the transfer is not the party’s own act but instead arises by operation of law. The Court’s stance can fairly be characterised as a strict black-letter approach. That black-letter reading is particularly stark when contrasted with the purposive approach adopted at first instance, where the judge concluded that, if the contracting party knew assignment would follow from its...

Practice Note Use this Practice Note to identify the governing law before the courts of England and Wales for harmful events that took place between 11 January 2009 and 31 December 2020. Where incidents happened outside those dates, the UK courts will apply an alternative choice-of-law regime, and the regime engaged turns solely on the date of the occurrence. If the date falls outside that span, a different regime applies, selected by reference to timing of the event. For direction on those regimes and how they interrelate, see Practice Note: Applicable law regimes. It summarises the special rules governing particular heads of claim under Regulation (EC) 864/2007 on the law applicable to non-contractual obligations (Rome II). The topics include product liability, unfair competition and restraints on free competition, environmental harm, intellectual property (IP) rights, industrial action, unjust enrichment, negotiorum gestio—i.e. agency without authority, and culpa in contrahendo—fault in forming a contract, as well as insurance...

Who insures? Joint insurance From a tenant’s standpoint, the preferred arrangement is for the premises to be insured in the joint names of the landlord and the tenant. For the tenant, the key advantages are: both parties are alerted before the policy comes up for renewal or lapses any insurance proceeds are payable jointly to landlord and tenant, giving the tenant influence over how the funds are applied (and therefore over the reinstatement of the premises) there are no detrimental effects if the landlord enters liquidation before reinstatement is carried out the insurers cannot rely on their right of ‘subrogation’ (see Subrogation below) against the tenant for damage the tenant caused or contributed to Nevertheless, in many cases arranging insurance in joint names will not be practical...

What is professional indemnity insurance? Professional indemnity insurance is a type of liability cover. It offers an individual professional or a firm an indemnity and protection against claims or losses resulting from negligent acts, mistakes or omissions linked to the insured professional practice. This cover usually also includes the acts, errors and omissions of former employees. In certain sectors—such as solicitors, accountants, architects, chartered surveyors, financial advisers and some healthcare professionals—holding professional indemnity insurance is a legal requirement. Nonetheless, any person or business that supplies advice, designs or services in a professional capacity should carry this insurance. The cover is generally intended to respond to client claims for damages arising in the ordinary course of the insured's professional services. These are claims brought by a client in connection with the routine delivery of the insured party’s professional services. For detailed guidance on professional indemnity insurance requirements across different professions, see Practice Notes: Professional indemnity insurance—solicitors Professional indemnity insurance—architects Professional indemnity insurance—accountants and auditors (ICAEW)...

Warranty & Indemnity insurance provisions—pro-buyer—short form—share purchase agreement Insert the following definitions as new definitions into clause 1 of the relevant Precedent—Share purchase agreement—pro-buyer—corporate seller—short form or Share purchase agreement—pro-buyer—individual sellers—short form (as applicable): 1 Definitions and interpretation W&I Policy means the warranty and indemnity insurance policy issued to the Buyer which, in accordance with its terms, covers risks arising from any actual or potential breach of the Warranties and claims made under the Tax Covenant; Insert the following as a new clause immediately following the clause 5 headed ‘Seller(s) Warranties’: 6 W&I Policy 6.1 The Buyer: 6.1.1 warrants to the Seller as at the date of this Agreement, that it has taken ...

Parties [ insert name of supplier’s parent company ], a company registered in [ England and Wales ] with registered number [ insert company number ] and its registered office at [ insert registered office ] ( Guarantor ) [ insert name of customer ], a company registered in [ England and Wales ] with registered number [ insert company number ] and its registered office at [ insert registered office ] ( Customer ) Each of the Guarantor and the Customer constitutes a party and, collectively, the parties. Background (A) The Customer and [ insert full supplier company name ] ( the Supplier ) have entered into an agreement for [ insert description ], dated [ insert date of the underlying agreement ] ( the Agreement ). (B) A condition [ precedent ] to the Agreement is that the Supplier secures the execution and delivery by the Guarantor of a guarantee [ substantially ] in the form...

Warranty & Indemnity insurance provisions—pro-seller—share purchase agreement Include the following terms as additional definitions in clause 1 of the relevant Precedent—namely, as applicable, Share purchase agreement—pro-seller—corporate seller—conditional—long form; Share purchase agreement—pro-seller—corporate seller—unconditional—long form; Share purchase agreement—pro-seller—individual sellers—conditional—long form; Share purchase agreement—pro-seller—individual sellers—unconditional—long form; or Share purchase agreement—pro-seller—corporate seller—short form: 1 Definitions and interpretation W&I Claim • means a claim brought by the Buyer under the W&I Policy; W&I Insurer • means the insurer or underwriter that issues and maintains the W&I Policy and is responsible for providing insurance cover for the risks set out in that policy; W&I Policy • means the warranty and indemnity insurance policy issued to the Buyer that, in accordance with its terms, provides cover for risks arising from any actual or potential breach of the Warranties and from claims under the Tax Covenant; Insert the following as a new clause immediately after the clause titled ‘Seller(s) Warranties’: 9 W&I Policy 9.1 The Parties...