Axa France Iard SA & Anor v Santander Cards UK Limited & Anor

Facts

The dispute concerned the historic sale of payment protection insurance alongside retailer store cards, from the 1970s until 14 January 2005. The policies were underwritten by Financial Insurance Company Limited and Financial Assurance Company Limited, whose rights and liabilities passed to Genworth and then, in December 2015, to the claimant AXA companies. The policies were sold at the point of sale by GE Capital Bank, later Santander Cards UK Limited, which novated its rights and obligations to Santander Insurance Services UK Limited in January 2010. For much of the period insurer and lender sat within the GE Capital group and reported into the same profit centre, with roughly 95% of net premium going to the lender. When PPI mis-selling complaints expanded dramatically from around 2011–2012, the regulatory regime left the insurers bearing the redress: AXA paid nearly £500 million in customer redress and more than £70 million in Financial Ombudsman Service fees. AXA sought recovery from Santander on four alternative bases, including a contractual indemnity in Clause 12.2 of an Agency Agreement executed on 1 December 2000 and contribution under the Civil Liability (Contribution) Act 1978. Dias J upheld the indemnity claim across the whole period, awarding some £677 million, but dismissed the contribution claim and Santander's mirror counterclaim. Santander appealed on construction; AXA cross-appealed on contribution.