AIG Europe Limited (Appellant) v Woodman and others (Respondents)

[2017] UKSC 18
UKSC 2016/0100
AIG Europe Limited (Appellant) v Woodman and others (Respondents)
On appeal from the Court of Appeal (Civil Division) (England and Wales)
The first respondent, "ILP" a solicitors' firm, was wound up in 2010. It was restored to the register of companies for the purposes of meeting certain claims brought against it by 214 investors. These claims, seeking damages in the amount of £10 million, arose from ILP's engagement by a property development company to assist with building holiday resorts in Turkey and Morocco. Proceedings in relation to those claims are ongoing. The appellant insurer, AIG, provided professional indemnity insurance to ILP. The insurance policy incorporates the Minimum Terms and Conditions of Professional Indemnity Insurance for Solicitors and Registered European Lawyers in England and Wales. The policy is subject to a "per claim" limit of £3 million.
AIG commenced proceedings in the Commercial Court seeking a declaration that the investors' claims against ILP should be aggregated pursuant to the aggregation clause in the insurance policy, on the basis that the claims "arose from … similar acts or omissions [of ILP] in a series of related matters or transactions". The judge at first instance refused to grant declaratory relief to AIG and the Court of Appeal, although it reversed the first instance judgment in part, rejecting AIG's interpretation of the aggregation clause. The issue in this case regarded the true construction of the words "in a series of related matters or transactions" within the aggregation clause of a professional indemnity insurance policy.
The Supreme Court unanimously allows AIG’s appeal.