Knapp and Another v Ecclesiastical Insurance Group Plc and Another

JurisdictionEngland & Wales
Judgment Date30 October 1997
Date30 October 1997
CourtCourt of Appeal (Civil Division)

Court of Appeal

Before Lord Justice Butler-Sloss, Lord Justice Hobhouse and Lord Justice Buxton

Knapp and Another
and
Ecclesiastical Insurance Group plc and Another

Negligence - insurance broker - effective date of cause of action

Effective date of cause of action against insurance broker

A cause of action against an insurance broker who negligently advised a client to take out an insurance policy which was voidable and which the insurer avoided when the client tried to claim under it arose when the policy premium was paid and not when the insurer avoided the policy.

The Court of Appeal so held in allowing an appeal by the second defendant, David Smith, trading as David Smith Insurance Brokers, against a decision of Sir Peter Webster sitting as a judge of the Queen's Bench Division refusing to strike out an action brought by the plaintiffs, William and Denise Knapp, on the ground that it was time barred.

Mr Robert Walker, QC and Mr Adam Tolley for the second defendant; Mr Rupert Jackson, QC and Mr Malcolm Stitcher for the plaintiffs.

LORD JUSTICE HOBHOUSE said...

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    ...the client paid a premium for a valid insurance policy which proved to be a voidable one (a reference to Knapp & Another v. Ecclesiastical Insurance Group Plc & Another [1998] PNLR 172, to which I shall come). Where the judge went wrong was, he said, to equate Mr Bradbury's failure to get w......
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