Bates and Others v Robert Barrow Ltd and Others, Ansell and Others v Same

JurisdictionEngland & Wales
JudgeGatehouse J
Judgment Date08 December 1995
CourtQueen's Bench Division (Commercial Court)
Date08 December 1995

Queen's Bench Division

Before Mr Justice Gatehouse

Bates and Others
and
Robert Barrow Ltd and Others, Ansell and Others v Same

Insurance - contract - retrospectively validated by statute

Retrospectivity restores validity of insurance contracts

The provisions of section 132 of the Financial Services Act 1986 were retrospective in effect at least to the extent that a person was able to claim for a loss that had arisen after section 123 came into force on January 12, 1987, when he had, before January 12, 1987, entered into an insurance contract with an insurance company that was not permitted to carry on an insurance business in the United Kingdom by warrant of the Insurance Companies Act 1982.

Mr Justice Gatehouse so held in the Queen's Bench Division in a judgment in open court after a hearing in chambers when deciding a preliminary issue and finding in favour of Lloyd's names, Sir Geoffrey Bates and others and Mrs Elizabeth Ansell and others, in their claims under stop-loss cover against Robert Barrow Ltd, R F Kershaw Ltd, D M Green & Co (Underwriting) Ltd, Gooda & Partners Ltd, David Evers Ltd Underwriting Agents, BPC Members Agency Ltd, Postgate & Denby (Agencies) Ltd and Kansa General Insurance Co Ltd as regarded their section 132 claim but finding against the plaintiff's claim in negligence.

Section 132 of the 1986 Act provides: "(1) … a contract of insurance … which is entered into by a person in the course of carrying on insurance business in contravention of section 2 of the Insurance Companies Act 1982 shall be unenforceable against the other party; and that party shall be entitled to recover any money or other property paid or transferred by him under the contract, together with any loss sustained by him as a result of having parted with it."

Mr Michael Crane, QC and Mr Matthew Reeve for the applicants; Mr Dominic Kendrick and Mr David Allen for Robert Barrow Ltd; Mr David Donaldson, QC and Mr Robert Anderson for R F Kershaw Ltd, D M Green & Co (Underwriting) Ltd, David Evers Ltd Underwriting Agents, BPC Members Agency Ltd; David Railton and Robert Handyside for Kansa; the other parties did not appear and were not represented.

MR JUSTICE GATEHOUSE said that in Bedford Insurance Co Ltd v Instituto de Resseguros do BrasilELR ((1985) QB 966) the judge held that as Bedford, a Hong Kong company, were not authorised under the 1982 Act to carry on marine insurance company business in the UK, the original contracts written on their behalf...

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7 cases
  • DR Insurance Company v Central National Insurance Company of Omaha [QBD (Comm)]
    • United Kingdom
    • Queen's Bench Division (Commercial Court)
    • 29 September 1995
    ....... Bates v Barrow Ltd [1995] CLC 207 . . Bedford ...The defendants submit that the same is true in the present case and in support of ..., Insurance Corporation of Ireland and others. Claims were made by Valco under the primary ......
  • Group Josi RE (formerly Groupe Josi Réassurance S.A.) v Walbrook Insurance Company Ltd
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 2 October 1995
    ...... 30 see also The Chief Constable of Kent & Others v. V ., [1983] 1 Q.B. 34 at pp. 45 and 49. . ... to restrain a bank from making payment, the same result follows. The bank is entitled and bound to ...in Bates v. Barrow Ltd (1995) 1 Q.R. 680 . That ......
  • Rubenstein v HSBC Bank Plc
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 12 September 2012
    ...been cited to us as illustrations to guide the decision in this appeal. I would refer to the following. 106 In Bates v. Barrow Ltd [1995] 1 Lloyd's Rep 680 the plaintiff insured sued their insurance brokers for negligence in the placing of their insurance. Their insurer, Kansa, had denied l......
  • Rubenstein v HSBC Bank Plc
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 12 September 2012
    ...by DG Solicitors) for the respondent/defendant. The following cases were referred to in the judgment: Bates v Robert Barrow Ltd [1995] CLC 207. British Westinghouse Electric and Manufacturing Co Ltd v Underground Electric Railway Co of London Ltd (No. 2)ELR [1912] AC 673. Brown v KMR Servic......
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