16 October 2018
Dalamd Limited v Butterworth Spengler Commercial Limited  EWHC 2558 (Comm): causation in claims against insurance brokers – what does an insured have to prove to make out its claim, and what does the broker have to prove to defend the claim?
In Dalamd Limited the Court considered allegations made by 2 insureds that, as a result of their insurance broker’s negligence, they had lost the chance to receive an indemnity for losses they had suffered in a major fire. In his judgment Butcher J. made important statements of principle regarding the proper approach to causation in such claims, and in particular (a) what an insured has to prove to succeed in a claim, and (b) what an insurer has to prove to defend the claim. The decision is essential reading for anyone acting for, or against, an insurance broker.
Neil Hext QC of 4 New Square acted for the successful claimant insured. The decision, and its implications, are considered by Ben Elkington QC of 4 New Square.