Judgment
MR JUSTICE JAY:
Introduction
On 25 th November 2006, the Claimant was a front seat passenger in a Mercedes 500SL driven by his acquaintance or friend, Shane Pickett. Owing to the driver’s negligence, a serious road traffic accident took place on the B4113 near Nuneaton. The Claimant had to be cut out of the wreckage of the vehicle and he was found to have sustained severe personal injuries. Members of the emergency services discovered a bag containing 240 grams of cannabis under the front of the Claimant’s jacket. A smaller quantity was found in Mr Pickett’s sock. Criminal proceedings were successfully brought against him in relation to his dangerous driving and the possession of cannabis. The police never interviewed the Claimant in respect of what happened that day, and he was not charged with any offence. The police response, or the absence of it, was probably brought about by the severity of the Claimant’s injuries and the degree of his pre- and post-traumatic amnesia: he simply has no recollection of any of the relevant events.
The driver held a policy of insurance with Tradewise Insurance Services Ltd (“Tradewise”) in respect of his liability under section 143 of the Road Traffic Act 1988 (“the RTA 1988”). On 4 th March 2009 Tradewise obtained an Order to the effect that it was at all material times entitled to avoid this policy of insurance pursuant to section 152(2) of the RTA 1988 on the grounds that the policy was obtained by the non-disclosure of material facts and by the representation of facts which were materially false. The matters which were misrepresented and/or not disclosed by the driver comprised that: (i) he suffered from diabetes; (ii) he suffered from depression; and (iii) he was a habitual cannabis user.
This state of affairs brought within potential scope the Motor Insurers’ Bureau (“MIB”) as insurer of last resort under the Uninsured Drivers’ Agreement made between it and the Secretary of State in 1999 (“the Uninsured Drivers’ Agreement 1999”). The precise nature of these arrangements will need to be examined subsequently, but at this stage it is sufficient to mention that Tradewise – standing in the shoes of the MIB - became the “Article 75 insurer” liable to meet the road traffic act liability brought about by Mr Pickett’s driving on this occasion, subject to it being proven that one of the exceptions set out in the Uninsured Drivers’ Agreement 1999 was applicable.
On 23 rd April 2009 the Claimant commenced procee
