The Exeter Bomb Incident
In February 2021, residents of Exeter had the briefest of glimpses into life almost 80 years ago, when a large unexploded World War II bomb was found by site workers. In the vicinity were various residential properties and several blocks of halls of residence owned by the University. The plans to make the bomb safe were always going to be risky and, alas, the bomb detonated in quite spectacular fashion, causing damage to properties in the vicinity.
The Insurance Claim and the War Exclusion
As you would expect, the University had insurance in place and so made a claim, amongst other things, for the damage caused to its buildings. As is often seen in insurance policies, the University’s policy did not cover situations where loss is caused by ‘war’, with a broad definition given, to include loss “occasioned by war.”
The insurer sought the court’s agreement that it was entitled to refuse the University’s claim, on the basis that the cause of damage had been occasioned by war, albeit a war that concluded over 75 years before. Given that the bomb lay unexploded for so many years, was the damage caused by the dropping of the bomb in the war, or was it the detonation of the bomb that caused the damage here?
The Court of Appeal’s Decision on Concurrent Causes
The Court of Appeal decided that the damage caused to the building had concurrent causes that led to the damage – the dropping of the bomb in wartime and the subsequent detonation years later. Because one of the concurrent causes was subject to the exclusion in the insurance policy, the outcome is that the insurers do not have to pay out under the insurance policy.
The Implications for Land Owners
Admittedly, unexploded bombs are not an everyday occurrence. So does the case have any wider relevance for land owners? In short, yes, although probably (hopefully!) with less dramatic backgrounds.
The key takeaway is that the case is a useful reminder that, just because damage is caused to your land by a third party, you could still find yourself out of pocket and needing to pay for the damage yourself. The chain of events that led to the damage occurring will be very carefully considered, and damage which has concurrent causes could be even more contentious.
