Litigation Recent Decisions 13/09/94

Contracts uberrimae fidei – standard of proof of fraudSun Alliance: proving duty of utmost good faithDiggens & Anor v Sun Alliance and London Insurance Plc (1994) (CA 29.7.94.) (Nourse LJ, Evans LJ, Sir Roger Parker LJ)

Summary: Right of insurer to recover all monies paid to insured if claim is proved to be fraudulent. Standard of proof and particularity of pleading required to establish fraud. Duty of utmost good faith in contracts uberrimae fidei is mutual.

Plaintiffs' appeal against judgment for u102,812 on defendant insurer's counterclaim for fraud and dismissal of their claim for u55,065 being the balance of insurance monies for the cost of remedial work for land subsidence which the defendants had refused to pay.