Lyons and Governor and Company of The Bank of Ireland v Eagle Star Insurance Company Ltd
Jurisdiction | Northern Ireland |
Judgment Date | 01 January 1939 |
Date | 01 January 1939 |
Court | King's Bench Division (Northern Ireland) |
Conditions in policy forming basis of contract - Repudiation of policy - Repudiation of liability - Arbitration clause -Condition precedent to action - Application by insurance company to stay action and to enforce arbitration clause - The Arbitration Act (N.I.),1937 (1 Edw. 8 1 Geo. 6, c. 4, s. 4.
Policies of insurance were issued by the defendants to both plaintiffs in respect of certain premises which were afterwards destroyed by fire, containing conditions under which the policies should be avoidable in certain events, and providing that all differences arising out of the policies should be referred to the decision of an arbitrator, and that the making of an award should be a condition precedent to any right of action against the company. The defendants relied upon (a) a non-disclosure of a previous fire in 1909, (b) the refusal by another company to accept the insurance in May, 1924, and the introduction on the premises of a battery-charging apparatus, involving increase of risk without the necessary permission of the defendants. Payment on foot of the policies was withheld by the defendants who repudiated liability on the above-mentioned grounds. The plaintiffs then brought an action claiming for a loss under the two policies of fire insurance and for damages for breach of contract to insure the premises. The defendants applied for an order that all further proceedings in the action be stayed and that the action be referred to arbitration on the ground that the decision of the differences between the parties by...
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