''Lambert v Co-operative Insurance Society Ltd''
9752 Lloyd’s Rep 485 is an
English contract law
English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries ...
case concerning
misrepresentation. It is an example of the operation of a positive duty of
good faith
In human interactions, good faith ( la, bona fides) is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. Some Latin phrases have lost their literal meaning over centuries, but that is not the case ...
in contracts for insurance.
Facts
Mrs Lambert signed a proposal form for ‘All Risks’ insurance over her husband’s jewelry, without mentioning her husband was convicted previously of receiving 1730 stolen
cigarettes
A cigarette is a narrow cylinder containing a combustible material, typically tobacco, that is rolled into thin paper for smoking. The cigarette is ignited at one end, causing it to smolder; the resulting smoke is orally inhaled via the oppo ...
and was fined £25. The Co-op issued the policy. Mr Lambert was convicted of two more dishonesty offences in 1971 and sentenced to 15 months jail. Mrs Lambert did not reveal this either when the policy was renewed in 1972. In April 1972 some items worth £311 were lost or stolen and the Co-op refused on the basis of a failure to disclose.
Judgment
Mackenna J held ‘the assured is under a duty of disclosure…
ut theextent of the duty is the matter in controversy.’ You could have a duty to disclose everything you think is material, everything a reasonable person thinks is, everything the particular insurer thinks is, or everything a reasonable or prudent insurer thinks is, like in s 18
Marine Insurance Act 1906. Because there is no difference between this insurance and marine insurance in principle, it should be the latter. He did however say the law was unsatisfactory and the Co-op were doing ‘a heartless thing… but that is their business, not mine.’
See also
*
English contract law
English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries ...
*
Misrepresentation in English law
In common law jurisdictions, a misrepresentation is a false or misleading '' R v Kylsant'' 931/ref> statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. The m ...
Notes
{{reflist, 2
English misrepresentation case law
High Court of Justice cases
1975 in United Kingdom case law