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This is the latest in our series of discussions about how clients have used HSF Kramer's Decision Analysis models as part of their strategy for disputes management.

This week, financial disputes specialist Donny Surtani describes its use in a sell-or-hold decision relating to a distressed debt holding:

In Ristorante Limited T/A Bar Massimo v Zurich Insurance Plc [2021] EWHC 2538 (Ch), the Court considered the interpretation and legal effect of a question asked by an insurer to a prospective insured around prior insolvency issues. The insured agreed with the insurer’s question, as framed, that there were no prior insolvency issues. Insurers failed in their attempt to avoid the policy for breach of the duty of fair presentation based on alleged misrepresentation. Insolvency events in relation to other companies did not need to be disclosed.