June 11 2014
In the case of ABN Amro Commercial Finance PLC v McGinn and others [2014], the UK High Court has ruled on the nature of conclusive evidence clauses and has upheld the clauses’ intended purpose – to circumvent protracted debates as to the validity of the underlying loss being certified.
The Court also concluded that the deeds of indemnity provided by the defendants created liability which was primary rather than secondary in nature. Both determinations signal a clear recognition by the Judiciary that surety agreements, properly obtained, can and will be enforced…