Bombs away – (another) case on proximate cause
This month sees another interesting case on proximate cause.
The case of Allianz v The University of Exeter concerned a bomb which had been discovered in 2021 during building works. The bomb had initially been dropped by hostile German forces in 1942. The bomb was analysed and discovered to have degraded to such an extent that the only viable option was for it be detonated on site.
The detonation resulted in damage to buildings in the vicinity owned by the University of Exeter (“the University”). The University sought an indemnity under its buildings and business interruption policies.
Insurers declined cover on the basis that the cause, or in the alternative the proximate cause of the damage (and subsequent interruption) was the act of the bomb being dropped and that, as such the war exclusion in the policy would apply. The University asserted that the proximate cause of the damage was the destruction of the bomb and that the war exclusion could never have intended to exclude the consequences of historic wars.
Judgment
The Court agreed with the insurers that the proximate cause of the damage was indeed war and that the policy exclusion applied.
In reaching this decision, the Court re-emphasised previous case law that confirmed that causation is to be considered on a ‘net’ and not a ‘linear’ basis because causal factors ‘may converge from all directions’ rather than occurring in a convenient and linear way. In the words of the judgment, it is the ‘character of those events rather than the chronological order’ that determines the proximate cause.
Contents
- The Word, March 2023
- Assigning your contracts – a timely reminder
- Climate risk capital – a warning to insurers from the Bank of England
- Increase to FOS limits
- Parametric policies – the future of insurance?
- Increase in the cost of data breaches reaches a five-year high for businesses, report says
- A rise in strikes, riots and civil commotion set to test businesses
Key contact
Tim Johnson
Partner
tim.johnson@brownejacobson.com
+44 (0)115 976 6557
You may be interested in...
Legal Update
e-Evidence Package: Increased obligations on service providers to cooperate with data requests from law enforcement authorities
Legal Update
Building an inclusive workplace: strategies for attracting and retaining disabled talent
On-Demand
Kinship care: DJ v Barnsley Metropolitan Borough Council and SG
Legal Update
After a pause, Buy Now Pay Later (BNPL) regulation becomes one step closer
Legal Update
Updates to the UK’s Arbitration Bill
Legal Update
Ozempic: The rising costs and coverage issues of weight loss medication
Legal Update - Employment Rights Bill
What does the Employment Rights Bill mean for employment practices liability insurance?
Legal Update
ICAEW: Changes to PII requirements
Legal Update
Contractor insolvency: Peabody Trust v NHBC
Legal Update
Insurability by design: Increased transparency for vehicle manufacturers and insurers
Legal Update
By a narrow 2 to 1 majority, the Court of Appeal finds in favour of insurers in the construction of an exclusion clause in a W&I policy
Legal Update
Organisational approaches to ESG matters
Legal Update
LMA binders’ consultation
Legal Update
Smooth sailing ahead: The LMA's new Open Form Default Clause
Legal Update
PFAS: The issue that won’t go away
Legal Update
Oklahoma earthquake: Racial discrimination in adjudication
Legal Update
Will the Online Safety Act help reduce Google ad spoofing in insurance?
Legal Update
Vicarious liability for kinship foster carer abuse: Implications for local authority insurers
Legal Update
Latest short-term insurance trends
Legal Update
Motor finance complaints on hold: Why now is the time for strategic action
Published Article
General insurance claims part 3: evidence of the insurance markets’ learnings from the consumer duty
Legal Update
Artificial intelligence putting the ‘actuarial defence’ to the test?
Legal Update
Under the influence: France introduces insurance requirement for influencers
Legal Update
Insuring a summer of sport
Legal Update
The impact of UK riots on insurers
Legal Update - The Word
The Word, August 2024
Legal Update
Product Safety and Metrology Bill: E-bike and e-scooter fires
Opinion
Choose your words wisely: Balancing inclusivity and employees’ beliefs at work
Published Article - Consumer Duty
General insurance claims: The consumer duty’s easy target? (part 2: ‘a history of warnings’)
Legal Update
Words matter: Another case on the importance of accurate drafting
Legal Update
How might AI impact insurer climate targets?
Legal Update
London Fire Brigade to stop attending for automatic fire alarms: Implications for insurers
Legal Update
Navigating Oil Price Cap legislation: LMA issues revised Cargo and Hull wordings
Legal Update
It’s not cricket: Insurers change their mind about jurisdiction
Legal Update
Using AI to help spot vulnerable customers
Legal Update
Is your cyber resilience shored up?
Legal Update
CrowdStrike: Assessing the fallout of potentially the “largest IT outage in history”
Press Release
Browne Jacobson survey finds 38% of insurers considering pulling out of the solicitors PII market
Legal Update - DORA
EU Digital Operational Resilience Act: Countdown to comply with the January 2025 deadline
