CA-2024-002563 - [2025] EWCA Civ 932

Introduction

The principal issue in this appeal concerns the proper construction of an NHBC insurance policy. The policy provides insurance cover to an employer (“Peabody”) when they “have to pay more” than they would otherwise have done due to the contractor’s insolvency or fraud before practical completion. Here the contractor became insolvent. The NHBC argues that the cause of action under the policy accrued on the insolvency of the contractor in 2016, and that in consequence, Peabody’s cause of action in these proceedings is statute-barred. Peabody argues that the cause of action accrued in 2021 when they had to pay more to complete the building of the homes as a result of the insolvency, and that therefore the claim is not statute-barred. Mr Andrew Mitchell KC, sitting as a Deputy High Court Judge (“the judge”), found against the NHBC’s construction, but left it open as to whether, on Peabody’s construction, the claim was statute-barred. The NHBC has permission to appeal that decision.