Wednesday 10 December 2014

Jersey: contractual performance and an implied term of good faith

Last month the Royal Court (Samedi division) gave judgment in Haden-Taylor v Canopius Underwriting Ltd [2014] JRC 221, an important case on Jersey contract law dealing with an issue - good faith - on which there is little judicial authority. The judgment was delivered by the Master of the Royal Court, Advocate Matthew John Thompson, and published a couple of days ago.

Master Thompson, in the context of an application to strike out various claims, held that it was arguable that an implied term of good faith existed in contracts governed by Jersey law in respect of contractual performance by the parties. This implied term applied also to insurance contracts and was not inconsistent with the obligation of utmost good faith to which contracts of insurance were subject.

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