Case Summaries
Allianz Insurance Plc v University of Exeter [2023] EWHC 630 (TCC) – 22 March 2023 (Bird J)
The University suffered property damage when a previously undiscovered undetonated German bomb (nicknamed 'the Hermann' after Göring) dropped in 1942 was subjected to a controlled detonation. The Claimant Insurers sought a declaration that the damage was "occasioned by war" entitling them to rely on the policy war exclusion clause. In determining the “proximate cause” of the loss, the Court held the common-sense analysis was that it was caused by the explosion necessitated by the reasonable and correct decision to detonate; that decision was necessitated by the original dropping of the bomb which was the “obvious proximate cause of the damage”. The damage was “occasioned by war”.
Omya UK Ltd v Andrews Excavations Ltd & Anor [2022] EWHC 1882 – 19 July 2022 (Mr Roger Ter Haar QC)
Omya succeeded in its claim for GBP765,094.40 and, having made a (rejected) Pt.36 offer to accept GBP756,287.05, sought enhanced interest (up to 10% above base) and indemnity costs. Despite the damages exceeding the offer by a margin of just 1.15%, the Court ruled that it was a genuine one and the usual consequences should apply. As the Court found the Defendants’ general conduct to be highly unreasonable (implausible and absurd defences and denials) it awarded indemnity costs both before and after expiry of the offer; due to the narrow margin, however, it restricted interest to 5% above base.