Executive Summary
- The case concerns Mode Management Ltd and Gary Tregunno’s claim against AXA Insurance UK Plc regarding a Property Investor’s Protection Plan Insurance policy.
- The claim arises from a fire on 7 February 2018 that destroyed/damaged industrial units owned by Mr Tregunno and insured under the policy held by Mode.
- AXA avoided the policy ab initio citing misrepresentation and non-disclosure related to ownership, planning permissions, and county court judgments.
- The claimants seek declaratory relief, specific performance, damages under FSMA, and other reliefs.
- AXA applied for summary judgment and/or strike out on grounds including limitation periods and lack of prospects of success.
- The court narrowed the issues, focusing on specific performance, FSMA damages, and a claim under the Fire Prevention (Metropolis) Act 1774.
- The judgment addresses procedural and substantive legal principles relevant to summary judgment and strike out applications.
Sanctions Highlights
- — No sanctions implications identified in the case.
Emerging Risks
- Potential reputational risk for insurers in handling claims involving complex ownership and disclosure issues.
- Legal uncertainty around insurance contract enforcement where policy avoidance is based on alleged misrepresentation.
- Risk of protracted litigation due to evolving jurisprudence on insurance claims and statutory remedies.
- Challenges in proving claims under older statutes (e.g., Fire Prevention Act 1774) in modern commercial contexts.
Geopolitical Impact
- The case is situated within the UK legal system, specifically the England and Wales High Court (Commercial Court).
- Reflects ongoing UK judicial scrutiny of insurance industry practices and consumer protection under UK law.
- Highlights the role of UK courts in balancing insurer rights and policyholder protections amid complex commercial disputes.
- No direct international geopolitical ramifications, but underscores UK’s robust legal framework for commercial insurance disputes.
Economic Intelligence
- The dispute involves significant commercial property insurance claims, with implications for risk assessment and underwriting in UK property markets.
- AXA’s avoidance of the policy may influence insurer approaches to due diligence and risk disclosure requirements.
- Potential financial exposure for insurers if courts limit the scope of policy avoidance or expand remedies for policyholders.
- The case may affect insurance premium pricing and claims handling strategies in the UK commercial insurance sector.
Strategic Recommendations
- Insurers should enhance transparency and documentation during underwriting, especially regarding ownership and planning permissions.
- Legal teams should monitor evolving case law on insurance contract avoidance and statutory claims under FSMA and historic statutes.
- Policyholders and corporate owners must ensure clear, accurate risk disclosures to avoid policy avoidance risks.
- Litigation strategies should consider summary judgment thresholds and focus on narrowing issues to core legal questions.
- Stakeholders should prepare for potential regulatory scrutiny on insurance claim practices in the UK market.
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**Source Notes:**
Sanctions Intelligence Digest — [https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/2035.txt](https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/2035.txt)