EWHC 2225 (Comm)
James Brocklebank and Sushma Ananda of 7 KBW, successfully defended insurance brokers, OAMPS Special Risk Limited (“OAMPS”), in a professional negligence claim concerned with the insurance of a multi-million euro super yacht (the M.Y. Galatea) which suffered significant damage while berthed at a marina. In the same action, the insured claimed against its insurers for an indemnity under the insurance policy, failing which it sought damages against its producing broker, and placing broker (OAMPS).
Following a three week trial in the Commercial Court before Mr Justice Leggatt, it was determined by the learned Judge that the insurers, represented by Alistair Schaff QC, also of 7 KBW, were entitled to avoid the policy of insurance for non-disclosure of the market value of the yacht, but that OAMPS, as a Lloyd’s placing broker, neither owed any duty directly to the insured, nor was in breach of any duty.
The Judge’s findings as to the materiality of over-valuations of vessels, and the circumstances in which a placing broker owes a duty of care in tort to the ultimate insured are of general interest.
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