New Judgment: Versloot Dredging BV & Anor v HDI Gerling Industrie Versicherung AG & Ors  UKSC 45
20 Wednesday Jul 2016
On appeal from:  EWCA Civ 1349.
The appellant was the owner of a vessel that had been incapacitated by a flood, and the appeal was whether or not the respondent insurers were entitled to repudiate liability on the ground that the appellants had told a lie in the making of their claim irrelevant to the insurer’s liability. Held: the fraudulent claims rule does not apply to collateral lies, and the appeal was upheld. If a collateral lie is to prevent a claim form being successful it must be “material” to the claim made [cf paras 23-36]. The test being that the collateral lie must at least go to the recoverability of the claim on the true facts found by the court [cf paras 35-36], in this case the lie told by the appellants was not material to the claim made.