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Lloyd's & Institute of London Underwriting Companies v. Fulton5/12/2000 e court concludes that it is unfair to make these insureds prove the essential estoppel element of prejudice. Assuming the court's fairness concerns are not remedied by adopting a presumption of prejudice, it should be sufficient to shift the burden to the insurers to prove lack of prejudice. Instead, the court creates a conclusive presumption of prejudice, and renders that presumption irrebuttable by preventing the insurers from disputing this essential element of estoppel. I see no justification for making this presumption irrebuttable.
Thus, I think it is legally incorrect to assume that the only evidence relevant to prejudice concerns the interview events. Alternatively, I think it was clear error to find prejudice in the face of overwhelming independent location evidence, absent evidence of how the interview breaches actually harmed the Clarks. And if the interview breaches did prejudice the Clarks, it was error to altogether foreclose litigation on the navigational warranty when a lesser equitable remedy would have restored them to the positions they occupied absent these relatively minor and immaterial breaches. Finally, it was error to estop the insurers from raising an issue that was not dependent on information learned at the interviews.
We should therefore reverse and remand for further proceedings.
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