||All England Reporter
|| All ER (D) 18 (Apr)
|| EWCA Civ 375
||Court of Appeal, Civil Division
Brooke, Moore-Bick LJJ and Sir Peter Gibson
||David Railton QC and Akhil Shah (instructed by Clyde & Co) for the claimant.
||Andrew Popplewell QC and Neil Calver (instructed by Baker & McKenzie LLP) for the defendant.
||4 April 2006
Contract - Construction - Contractual agreement - Settlement agreement in respect of claim under insurance policy - Whether assured in breach of terms of settlement agreement.
The claimant insurer was entitled to recover by way of damages for breach of a settlement agreement the amount which it had paid out pursuant to that agreement in respect of a claim made by the defendant under a policy in respect of losses resulting from the failure of trade debtors to pay amounts due from them. The defendant had acted in breach of the terms of the settlement agreement by failing to pursue its claim against the debtor, by legal proceedings if necessary, to the stage at which it had established its right to recover the debt in question.
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