A case that sets a precedent for all damage-based liability claims has been decided in the Commercial Court.
Glass manufacturer Pilkington lost its legal challenge against CGU Insurance in respect ...
A case that sets a precedent for all damage-based liability claims has been decided in the Commercial Court.
Glass manufacturer Pilkington lost its legal challenge against CGU Insurance in respect of its product liability policy for glass installed at the Eurostar terminal at London's Waterloo station.
The action concerned what was required to constitute "loss or damage" in order to trigger any potential indemnity against third party claims.
It arose after Pilkington installed defective glass panels in the roof and walls of the terminal in the 1990s. Several panels broke and fell, but because they did not cause any physical damage, CGU refused Pilkington's product liability claims.
Pilkington challenged the decision using US legal precedents, arguing that the terminal had been damaged when the panels were discovered to be defective as its structure was weakened, despite the fact that physical damage had not occurred.
Judge Michael Dean upheld that physical damage was required to activate the policy, but granted Pilkington leave to appeal.
Richard Houseago, a partner at Greenwoods Solicitors, which acted for CGU, said confirmation that physical damage was required would have implications for all damage-based liability policies.
