Fire Insurance in UK Law

It seems to me that the insured only acquires a right to sue for the money when his liability to the injured person has been established so as to give rise to a right of indemnity. His liability to the injured person must be ascertained and determined to exist, either by judgment of the Court or by an award in an arbitration or by agreement. Until thatis done, the right to an indemnity does not arise.

Under the section it is clear to me that the injured person cannot sue the Insurance Company except in such circumstances as the insured himself could have sued the Insurance Company. The insured could only have sued for an indemnity when his liability to the third person was established and the amount of the loss ascertained. In some circumstances the insured might sue earlier for a declaration, e.g. if the insured company were repudiating the policy for some reason.

It is quiteunheard of in practice for any assured to sue his insurers in a money claim when the actual loss against which he wishes to be indemnified has not been ascertained, I have never heard of such an action and there is nothing in law that makes such an action possible.

I prefer to give a wide interpretation to the rule, as Lord Esher, Master of the Rolls, did in Byrne v. Brown (1889) 22 Queen's Bench Division, p. 657. It seems to me that when two parties are in dispute in an action at law, and the determination of that dispute will directly affect a third person in his legal rights or in his pocket, in that he will be bound to foot the bill, then the Court in its discretion nay allow him to be added as a party on such terns as it thinks fit.

When the oil companies, as shareholders, approved what the plaintiffs' directors had done there was no cause of action because at that time there was no damage. What the oil companies were doing was adopting the directors' acts and as shareholders, in agreement with each other, making those acts the plaintiffs' acts.

A company, as it seems to me, likewise owes no duty of care to future creditors. The directors indeed stand in a fiduciary relationship to the company, as they are appointed to manage the affairs of the company and they owe fiduciary duties to the company though not to the creditors, present or future, or to individual shareholders.

It seems to me that the basis of an award of interest is that the defendant has kept the plaintiff out of his money? I do not think the plaintiff should recover interest for himself on the money when he has not been kept out of it.