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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Goodway & Anor v Zurich Insurance Company [2004] EWCA Civ 1446 (18 October 2004) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2004/1446.html Cite as: [2004] EWCA Civ 1446 |
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IN THE COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM TECHNOLOLOGY AND CONSTRUCTION COURT
(HIS HONOUR JUDGE STAUNTON)
Strand London, WC2 |
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B e f o r e :
____________________
(1) RICHARD CHARLES GOODWAY | ||
(2) CARABOS LTD | Applicant/Claimant | |
-v- | ||
ZURICH INSURANCE COMPANY | Respondent/Defendant |
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Smith Bernal Wordwave Limited
190 Fleet Street, London EC4A 2AG
Tel No: 020 7404 1400 Fax No: 020 7831 8838
(Official Shorthand Writers to the Court)
THE RESPONDENT DID NOT APPEAR AND WAS NOT REPRESENTED
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Crown Copyright ©
"5.1 A walkover survey of No 1 and No 2 Downsview has confirmed that the buildings have been constructed generally in accordance with the specifications of the geotechnical and structural engineer and the architect. The evidence of the survey suggests that there are no significant defects that could impair the structural performance of the building components or affect their durability.
"5.2 The form of connection of some of the surface water drains to the combined sewer may not be in accordance with the requirements of the building regulations or the architects specifications and this deficiency has the potential to adversely affect the building foundations. It is recommended that the builder be asked to expose the roof drainage connections and to make good those that do not conform.
"5.3 A major defect in the front boundary wall of No 1 Downsview has been identified. The defect is considered to have been caused by the failure of measures intended to allow for the presence and continuing growth of the root of a retained conifer. The damage is unrelated to the stability of the adjacent bungalow which is not threatened by the presence of the tree. The defect is not likely to cause early collapse of wall but the damage is severe and may be ongoing. It is recommended that the tree be removed and that the damaged section of the wall be rebuilt."
"1. Would the Zurich have been entitled to an order in the terms sought but for the developments that occurred during the hearing? This issue is primarily related to the inevitable costs application for its costs of this application by the Zurich and a responsive cross-application for their costs from Carabos and Mr Goodway of that application in the light of it no longer being pursued."
"57. It follows that a court would have concluded that there had been no established breach of the Tomlin Order entitling the Zurich to mandatory relief, no basis for showing that Zurich intended to be ready and willing to be bound by the
Tomlin Order and no basis for the court to exercise its discretion in favour of the Zurich given the mutual failure to implement the terms of the Tomlin Order. Therefore, the equitable relief being sought would not have been granted, even if the application had been maintained until the end."
"2. Were the Zurich in breach of the Tomlin Order by the delay in its being implemented in part and, if so, what damages may be recovered by Carabos and Mr Goodway?"
"59. This claim is misconceived for essentially two reasons. Firstly, any conduct causing delay was mutual and secondly, any delay caused by the Zurich caused them no loss since they were neither ready or willing to market the properties even if the Newbuild cover had been offered in the period up to at least April 2003. Throughout the period from late June 2002 until the hearing of the applications in December 2003, neither Carabos nor Mr Goodway were ready or willing to perform the Tomlin Order. The following factors show that both had evinced an intention not to be bound and not to cooperate and partner in the putting into effect the terms of the Tomlin Order as speedily as possible:
"1. At no time [up to at least April 2003] did either defendant [claimant] seek to put the properties on the market, to advertise them or to instruct agents to market them.
"2. Throughout the period from July to September 2002, both Carabos and Mr Goodway sought to prolong with petty objections the discussions as to the terms of appointment and the identity of the surveyor. Both could have notified the Zurich at the outset of their objections and then asked the Zurich to appoint the surveyor on appropriate terms and continue the discussion about fees whilst the surveys were being arranged and carried out.
"3. Both decided ... that they would seek alternative insurance cover for the properties which they successfully achieved in February 2003. Notwithstanding that, the properties were not then [immediately] marketed.
"4. Both failed [adequately] to respond to the Zurich's invitation to undertake the proposed remedial work, to seek to show that the drains were satisfactory or to propose an alternative scheme to deal with the boundary wall once the Needham report was served on them.
"4. Neither defendant [appeared to have] had the means or the intention to provide the £20,000 deposit required before the Final Certificates were issued."
"3. Is the Tomlin Order to be set aside or are damages for misrepresentation inducing it to be recovered on account of misrepresentations by the Zurich addressed to Mr Goodway and Carabos prior to its being finalised which induced the settlement and, if damages are to be awarded, what damages are recoverable?"
"67. This claim suffers from a series of fundamental defects:
"1. There is no misrepresentation alleged. The best that can be suggested is that the list of documents amounted to a misrepresentation that it contained all disclosable documents when the facts and the covering breakdown were not disclosed but were in BLM's possession. However, the nature and extend of the non-disclosure is so limited that the list, as served, cannot amount to any misrepresentation as to disclosable documents or as to the potential weakness of Zurich's case.
"2. The fax is a privileged document since it was a communication from a witness to the Zurich's solicitor for the purpose of preparing Zurich's case for trial.
"3. The documents do not clearly show that the damages claimed was inflated, dishonestly calculated or relating to work which was not done or which did not itself relate to defects caused by Carabos and Mr Goodway.
"4. There is no evidence that a payment into court ... would have been ... that any assessment of the defendant's prospects and risks would have [been made, or had any assessment been made that it would have] relied to any extent on these documents [had they been disclosed and then] made available to Carabos and Mr Goodway.
"5. The documents, and their absence from the discovery provided in November 2001, did not induce or even influence Carabos and Mr Goodway in their thinking, in agreeing to enter into the settlement reached in June 2002."
"1. The costs of both claim and counterclaims be assessed together.
"2. Zurich is to recover one half of its costs on both claim and counterclaim and Mr Goodway and Carabos are to recover none of their costs."
"84. In these circumstances we have concluded, much to our regret, that we have no alternative than to recognise this the judge has erred so fundamentally in his approach to this trial as to have lost, or at least given the appearance of losing, his ability to try CWS's claim with an objective judicial mind (cf Locabail (UK) Ltd v Bayfield Properties Ltd [2000] QB 451 at 480F/G). It is not that he has come to the trial with any preconceived prejudice or predilection or bias: but that over the course of it he has demonstrated an inability to grapple objectively with the issues of fact and law presented to him. In the result the trial was unfair."
"Even if the Newbuild cover had been offered up to the period ending June 2003."
"Even if the Newbuild cover had been offered in the period up to at least April 2003".
"It is submitted that Zurich, as signatories, sought not to disclose a document which would prove that the 34 pages of CCM costings were not contemporaneous as sworn but were compiled during proceedings, and that this is a material misrepresentation."
"61. Both Carabos and Mr Goodway contend that the Zurich misrepresented the strength and nature of its claims in the first set of proceedings on two occasions, that those misrepresentations induced the settlement agreement and that the agreement has caused them loss in the form of an unduly favourable settlement. In consequence, they claim [the] rescission of the Tomlin Order or damages in lieu of rescission."