Gard Marine & Energy Ltd v Tunnicliffe [2011] EWHC 1658 (Comm), [2011] All ER (D) 03 (Jul)
It was settled law that the correct approach to construction of a written contract was, first, that one was seeking to “ascertain the meaning which the document would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the contract”. Secondly, in the context of a reinsurance contract, and in particular one expressed to be “subject to all terms, clauses, and conditions as Original and to follow the Original in every respect ...”, the factual matrix included the terms of and circumstances surrounding the underlying policy. Thirdly, the factual matrix would also include evidence about relevant market practices, which were widespread but not universal, if the existence of such practices was part of the background known to each party. Further, if the parties had used terms which bore not only an ordinary meaning and acceptation, but also one peculiar to the department of trade or business to whic