From Fraudulent Devices to Collateral Lies: The Supreme Court's Recalibration of Post-Contractual Good Faith in Versloot
| Pages | 30-43 |
| Date | 01 June 2026 |
| Published date | 01 June 2026 |
| Author | Aishwariyaa Angelina Stephen |
| Subject Matter | Social Sciences |
Southampton Student Law Review
Volume 16, Issue II Autumn 2026
30
ARTICLE
From Fraudulent Devices to Collateral Lies: The
Supreme Court’s Recalibration of Post-Contractual Good
Faith in Versloot
AISHWARIYAA ANGELINA STEPHEN†
University of Southampton
ABSTRACT. This article examines the implications of the Supreme Court’s decision in
Versloot Dredging BV v HDI Gerling Industrie Versicherung AG (The DC Merwestone),
which abolished the fraudulent devices rule in English insurance law. The Supreme Court
decision represents a principled recalibration of the law governing dishonest claims
conduct rather than an overextension of protection for insureds. The analysis of materiality,
causation and proportionality in the fraudulent devices’ context demonstrates that forfeiture
is confined to dishonesty that is causally relevant to the insurer’s liability, as affirmed in
Versloot. Collateral lies, which merely accompany otherwise valid claims, lack this causal
connection and therefore fall outside the proper scope of forfeiture. The decision therefore
aligns fraud doctrine with the compensatory function of insurance contracts.
Table of Contents
Introduction ....................................................................................................................... 31
1. Post-contractual duty of utmost good faith ................................................................ 31
2. Fraudulent Claims: The Continuing Strict Forfeiture Rule ........................................ 33
3. Pre- Supreme Court Decision in Versloot .................................................................. 35
4. Post- Supreme Court Decision in Versloot ................................................................. 37
4.1. Materiality and Causal Link ............................................................................... 37
4.2. Proportionality ................................................................................................... 39
4.3. Public Policy Concern ........................................................................................ 41
Conclusion ........................................................................................................................ 43
† Final-Year LLM Candidate in International Corporate and Commercial Law, University
of Southampton. The author is grateful to Bei Jin and the Editorial Board for their valuable
comments and constructive feedback on this article. Any remaining errors or omissions are the
author's own.
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