Court of Appeal overturns Limit v Axa - in Part

Lawyers James Crabtree, Anthony Menzies

Limit No. 2 Ltd v Axa Versicherung AG [2008]

Court of Appeal, 12 November 2008

The first instance Judgment in Limit v. Axa [2007] was a controversial decision, particularly among London market cedants in the marine and energy market. The principal question in the case was one of avoidance for misrepresentation as to underwriting practice, an issue turning largely on its own facts.  However, the case also gave rise to a series of other matters of much wider importance to the conduct of reinsurance business.  Some of those issues went on to appeal, although others (perhaps most interestingly of all, the question of cession of "risks" accepted under open covers) did not.

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