IHC (a firm) and another v Amtrust Europe Ltd

Insurance – Claim. The claimants had been partly successful as defendants (IHC) in a previous action against a company in liquidation Consortium. In order to get payment in respect of a costs certificate awarded in their favour, the claimants sought pursuant to s 1 of the Third Parties (Rights Against Insurers) Act 1930, payment of the amount unexpended of the total amount of cover provided to Consortium under after the event insurance, even though Amtrust had been entitled to repudiate the ATE contract of insurance made between itself and Consortium by reason of a serious fraudulent misrepresentation. The Queen's Bench Division dismissed the claim on the basis that the claimants had failed to establish on the facts that Amtrust was estopped from relying upon that right.

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