Jurisdiction(s):
United Kingdom

EWHC clarifies insurers cannot seek contribution in Third Parties (Rights against Insurers) Act 2010 direct actions; ‘same damage’ under Civil Liability (Contribution) Act 1978 not satisfied

Published on: 10 December 2024

Published by a LexisNexis Dispute Resolution expert

Legal News

Article summary

Riedweg v (1) HCC International Insurance Plc, (2) Sheridan v (1) Forsters LLP, (2) Johns [2024] EWHC 2805 (Ch)

What are the practical implications of this case?

Master Brightwell’s ruling, which accords with and develops prior authority, makes clear that an insurer cannot itself add to the proceedings alleged tortfeasors or other parties whom the insured could have joined. Practitioners for insurers should be quick to seek to persuade claimants to join the insured, even if that involves accepting the costs consequences of such joinder, where doing so serves their interests in bringing in other prospective defendants...

What was the background?

The claimant issued a professional negligence claim. She alleged that Goldplaza Berkeley Square Ltd (Goldplaza) negligently overvalued a property she agreed to buy for £8m in December 2016. She said she would not have entered into the purchase but for that overvaluation, and that, because of it, she was unable to complete or to assign the contract for the sale of the property. The seller later sold the property to a third party for the lower figure of £5,500,000...

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