The Supreme Court rules that a “collateral lie” does not lead to forfeiture of an insurance claim

The Supreme Court has allowed Versloot Dredging’s appeal by a majority of 4 to 1, holding that the ‘fraudulent device’ rule does not apply to collateral lies, which are immaterial to the insured’s right to recover.  Lord Sumption gave the lead judgment.  Lord Clarke, Lord Hughes and Lord Toulson give concurring judgments.  Lord Mance gave a dissenting judgment.

Colin Edelman QC acted for the Respondents and was instructed by Joe O'Keeffe of Ince & Co.

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