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Insurer Can Reopen Settlement to Revive an Allegation of Fraud – UK Supreme Court

Parker & Associates - Friday, July 29, 2016

In Hayward v Zurich Insurance Company plc [2016] UKSC 48 (27 July 2016) the United Kingdom Supreme Court ruled that an insurer which had settled a claim could revive it if the claim was fraudulent. Lord Clarke, delivering the leading judgment, ruled “I am not persuaded that the importance of encouraging settlement, which I entirely agree is considerable, is sufficient to allow Mr Hayward to retain moneys which he only obtained by fraud.”

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