Commercial Court Rules Again On 'Series Of Related Events' Language

Beazley Underwriting Ltd & Anor v. The Travelers Companies Incorporated [2011]1

In May 1997 the Defendant (Travelers) sold the Minet Group of broking companies to Aon. Under the terms of the deed of sale, Travelers agreed to indemnify Aon against any loss, liability, claim or cost relating to the conduct or business of the Minet Group and arising out of any event or matter occurring on or before the date of completion.

The deed also provided that where there was a continuing series of related events, occurrences or matters which otherwise amounted to an indemnified claim then all such events etc. occurring during the period of 12 months following completion would be deemed to have arisen or occurred prior to completion.

Travelers procured PI insurance to cover the liabilities assumed by them under the deed, on a claims made basis. The particular policies issued by the Claimants covered the period between the sixth and seventh anniversaries of the deed, and were the...