Crowden and another v QBE Insurance (Europe) Ltd

Practice – Summary judgment. The claimants brought a claim against the defendant professional indemnity insurer (QBE), seeking an indemnity, under an insurance policy, in respect of an insured financial adviser's liability to them for negligent investment advice concerning two financial instruments, the Keydata bond and the Meteor plan. The claimants had already obtained judgment against the financial adviser in respect of the investment advice it had received. The Commercial Court, in allowing (in part) QBE's application for summary judgment, held that an insolvency exclusion in the insurance policy issued by QBE applied to exclude the financial adviser's liability to the claimants in respect of the investment advice given concerning the investments. That was because, in each case, it had been the inability of the Keydata and the other relevant parties, to pay their debts as they had fallen due, which had given rise to the relevant claim, loss or liability. Accordingly, QBE bore no obligation of indemnity, under the policy, and the claimants had no real prospect of succeeding in their claim against it.

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