Insurers’ appeals dismissed by Supreme Court 15 January 2021

Supreme Court Judgment handed down on 15 January 2021 in the FCA Test case. The proceedings have been brought by the Financial Conduct Authority (the “FCA”) under the Financial Markets Test Case Scheme (the “Scheme”) pursuant to an agreement made with eight insurance companies to resolve issues of general importance on which immediately relevant and authoritative English law guidance is needed.

Leading judgment given by Lords Hamblen and Leggatt (with whom Lord Reed agrees). Slightly dissenting judgment by Lord Briggs (with whom Lord Hodge agrees) as to the approach in disease clauses within a limited radius.

The overall decision was at paragraph 313.:

XI       Conclusion

  1. Although we have accepted some of the insurers’ arguments on their appeals, in no case has that affected the outcome of the appeal. It follows that the insurers’ appeals are dismissed. We allow the FCA’s appeal on grounds 1 and 4, and on grounds 2 and 3 in the qualified terms set out in the judgment and in relation to those wordings where the appeal affects the outcome. We allow the Hiscox Interveners’ appeal on ground 1 and on grounds 2 and 3 in the qualified terms set out in the judgment. The parties are encouraged to agree appropriate declarations and orders to be made in the light of the judgment.

Supreme Court  Judgment and  Press Summary

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