AXA SA v GENWORTH FINANCIAL INTERNATIONAL HOLDINGS AND ANOTHER AXA FRANCE IARD (AS TRANSFEREE OF THE BUSINESS OF FINANCIAL INSURANCE CO LTD) AND OTHERS (NAMED THIRD PARTIES)

摘要

Sale and purchase agreement - Payment protection insurance - Sellers covenanting to pay on demand 90 per cent of PPI claims to purchasers - Whether obligation to pay was an indemnity - Whether sellers had subrogation rights - Whether sellers acted reasonably in withholding consent to agreements by buyers. Between 1988 and 2011, Financial Insurance Co Ltd (FICL) and Financial Assurance Co Ltd (FACL), then owned by Genworth Financial International Holdings, were engaged in the business of underwriting payment protection insurance (PPI) for store cards. During that period, Santander Cards UK Ltd and Santander Insurance Services UK Ltd (collectively, Santander) marketed and sold PPI on behalf of FICL and FACL, principally through retail stores. There were extensive complaints to the Financial Ombudsman Service (FOS) about the mis-selling of PPI from 2005 onwards. Until July 2014 Santander reimbursed FICL and FACL in respect of redress payments ordered by FOS. By a letter dated 7 August 2014 Santander stopped reimbursement payments.