Quantum Claims Compensation Specialists Ltd v Wren Insurance Services

[2] In October 1999 Wren and Quantum entered into an indemnity insurance contract, which had the policy number WLP1999200131. The policy required Quantum to pay the first �10,000 of any claim and provided insurance up to one of four agreed levels of cover. In the action, which I describe below, which it pursued on behalf of Mr John Carter, Quantum elected to take out cover of �100,000. Quantum claims that it is entitled to receive �90,000 (�100,000 less the excess of �10,000). Wren denies liability under the policy. This action is the result of that dispute.

[3] Counsel handled the proof in this action efficiently. I had the benefit of both affidavit and oral evidence from Mr George Alexander Clark, the managing director of Quantum, Mr Thomas David Christie, an insurance broker, and Mr Iain Armstrong QC, who conducted the proof in Mr Carter's case. There was also uncontested affidavit evidence from Ms Gillian Peebles and Mr Derek Reekie. Further matters were agreed in a Joint Minute. As a result the proof lasted only one and a half days.

"All Defendants subject to a Court action managed by the Insured ... providing such action has been declared to Underwriters in accordance with the Declaration Clause forming part of this policy."

" All Court action managed by the Insured ... providing such actions have been declared to Underwriters in accordance with the Declaration Clause forming part of this policy."

The sum insured under the policy was defined in the Schedule Item V in these terms: