Capital (Banstead 2011) Limited v RFIB Group Ltd

Indemnity – Construction of indemnity clause. A foundation and the trustees of the foundation's pension scheme brought proceedings against the second claimant company for negligence and other wrongdoings. The claimant companies sought to recover sums due from the defendant group (RFIB) under an indemnity. The Commercial Court held that a limitation defence would, on the facts, not succeed. However, RFIB was only liable for the settlement sums to the extent that they were in reasonable settlement of the claim for losses occurring prior to the transfer date. It was not liable insofar as the sum represented settlement of the claim for losses occurring after that date.