AXA responded with an application for summary judgment or strike out, arguing that the claims were time-barred under section 5 of the Limitation Act 1980 and had no real prospect of success. The court examined the policy’s terms closely. The policy covered buildings, rental income, and public liability, with Mode as the sole insured. The sums insured were £349,409 for Unit 1, and £209,645 each for Units 2 and 3, with rental income cover of £36,000, £26,000, and £24,000 respectively. The policy allowed AXA to pay out or reinstate at its option and excluded third-party rights except for the insured and insurer.
