The Court of Appeal yesterday handed down its judgment in Great Lakes Reinsurance (UK) SE v Western Trading Ltd  EWCA 1003.
Bob Moxon Browne QC and Lucas Fear-Segal appeared for Great Lakes Reinsurance, instructed by Kennedys, whose appeal was allowed in part.
The leading judgment of Christopher Clarke LJ provides welcome clarification as to the circumstances in which an insured is entitled to an indemnity on a reinstatement basis where the cost of reinstatement exceeds the loss in value of the land. The judgment contains comfort for insurers, since it provides clear and principled scope for ensuring, via declaratory relief, that an insured does not receive an indemnity on a reinstatement basis, when there is no real prospect that the damages will be used for reinstatement purposes.
Please click here for the judgment.