- Deeds of Guarantee, estoppel, validity, and limitation (Zurich Insurance Plc v Nightscene Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: The claimant, Zurich, was unable to rely on a deed that had been executed in a manner that did not conform with the requirements of the Companies Act 1985. The rule in Shah was of no assistance to Zurich in that the Deed would not have been valid on its face when it came into Zurich’s hands. In such circumstances, an estoppel could not arise. Zurich was, however, able to rely upon the Deed as a simple contract and Nightscene was, accordingly, liable. On a true construction of the contract, Nightscene’s liability did not arise until such time as sums were demanded on the Guarantee, and thus the claim was not statute-barred. Christopher Snell, barrister at No5 Chambers (London), examines the case.
Sign in or take a trial to read the full analysis.
To continue reading this news article, as well as thousands of others like it, sign in to LexisPSL or register for a free trial