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Enterprise Oil Limited -v- Strand Insurance Co Ltd

26th Jan 2006

[2007] Lloyd’s Rep IR 186; [2006] 1 Lloyd’s Rep. 500

Alistair Schaff Q.C. and Simon Kerr – The decision of Aikens J in Enterprise Oil Limited v. Strand Insurance Co Ltd confirms that what is required for recovery under a liability insurance policy is actual liability to a third party in at least the amount of the sum claimed by the insured and that, where the issue is liability in foreign proceedings (which have been compromised), the English Court should decide what, according to the relevant law and facts, the judge and jury should have concluded on liability and quantum. Moreover, the judgment contains an important critique of the decision of Colman J in the Lumberman’s Mutual Casualty Case (regarding the ascertainment of loss by settlement agreement), which Aikens J declined to follow.