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In 2004 United Insurance (a Libyan insurance company) successfully tendered
for the insurance business of the Libyan state-owned oil corporation,
"N". The reinsurance of that risk was placed by the defendant,
Aon. Aon also obtained reinsurance for United in relation to a Libyan
company in the chemicals industry, "G". Aon quoted for that
risk at a price dependent on it being an attachment to the N cover.
Aon's quote won and the cover was placed. United then required it to
be placed as an independent cover at an extra cost. In 2005 United asked
Aon to quote for the renewal of N's insurance. Aon did not do so but
quoted to N through another Libyan insurance company. That quote was
successful.
United then brought three claims against
Aon. In relation to the 2004 insurance of N, United claimed that Aon
had misrepresented and concealed the brokerage it earned and that as
a result Aon was obliged to account to United for all the brokerage
received. In relation to the G cover, United alleged that Aon was in
breach of contract in placing reinsurance that did not reflect what
United wanted or required. Thirdly, United claimed that in relation
to the 2005 N renewal, Aon had acted in breach of contract and of fiduciary
duty.
Aon was successful. United's claim in
respect of the commission on the 2004 N insurance failed on the facts:
United was not misled in any way. The total commission had been disclosed
and agreed. The attempts to re-open the rate of commission were fairly
and firmly dealt with.
With regards to the G cover, United must
have been aware that the price was based on attachment to the N cover,
which reflected United's own instructions. Aon was entitled to commission
that United had withheld on the extra cost of subsequently re-placing
the cover.
In relation to the 2005 tender to N,
there was no continuing relationship between United and Aon except in
the sense of possibly working together on the tender, but there was
never any agreement on the terms. United chose to seek competitive tenders
and not to establish or continue any broking relationship with Aon.
The opportunity to quote for N's business was available generally and
all local insurers were asked to tender. There was no contract under
which Aon could owe any fiduciary duty to United.
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