Royal & Sun Alliance Insurance Ltd v Tughans

Subject Matter

ARBITRATION — Award — Challenge to award — Defendant firm of solicitors making claim under professional indemnity insurance policy for cover in respect of claims brought against it by another firm — Claims including claim for damages in respect of success fee paid by that firm to defendant — Final arbitral award holding insurers liable to indemnify defendant in respect of all claims brought by firm, including in respect of any award of damages made in respect of success fee — Insurers bringing multiple challenges to award centred on arguments that award in respect of success fee contrary to indemnity principle and issue not referred to arbitration or only raised very late — Whether arbitrator not having had jurisdiction on basis issue not referred to him — Whether arbitrator having committed serious irregularity causing substantial injustice by considering matter not raised in arbitration — Whether arbitrator wrong in law to have concluded policy capable of providing indemnity in respect of defendant’s liability in damages in amount of success fee — Whether challenge to award to be upheld — Arbitration Act 1996 (c 23), ss 30(1)(c), 33(1)(a), 67, 68, 69

[2022] EWHC 2589 (Comm); [2023] 1 Lloyd's Rep 90; [2022] WLR(D) 417, KBD

INSURANCE — Liability insurance — Professional indemnity — Claim for damages against defendant solicitors — Damages sought including damages in amount of fee alleged to have been procured by misrepresentation — Whether solicitors entitled under insurance policy to indemnity in respect of fee — Whether such indemnity contrary to indemnity principle — Whether solicitors suffering insurance loss

[2023] EWCA Civ 999; [2024] 1 WLR 1651; [2024] 2 All ER 747; [2024] 1 All ER (Comm) 1069, CA

Appellate History

Commentary

RPC Perspectives
Solicitors Entitled to Insurance Cover for Liability for Fees: Royal Sun Alliance Insurance Limited & Others v Tughans (a firm) Case comment

Hailsham Chambers
Are there any circumstances in which professional indemnity insurers will indemnify insured persons in respect of a loss of fees? Case comment