A fire, a voided policy, and a six-year delay - AXA Insurance UK plc has secured a clear win in a commercial property insurance dispute that’s sure to resonate with the UK insurance industry.
On July 31, 2025, the High Court in London handed down its judgment in the case of Mode Management Ltd and Gary Tregunno versus AXA Insurance UK plc. The dispute centred on a “Property Investor’s Protection Plan Insurance” policy after a fire on February 7, 2018, destroyed one and severely damaged two industrial units at Hereford House, Lower Dunton Road, Brentwood. The property was owned by Gary Tregunno, who also served as the sole director of Mode Management Ltd - the only named policyholder on the AXA policy.
After the fire, Mode and Tregunno sought to claim under the policy. AXA, however, avoided the policy from the outset by letter dated September 28, 2018, citing alleged misrepresentation and non-disclosure before the policy’s inception. AXA’s concerns included Mode’s insurable interest - since the property was actually owned by Tregunno - questions about planning permission for renovations, and several county court judgments against Tregunno. When asked, Tregunno initially stated there was a lease between him and Mode, but Mode’s pleaded case later claimed it held its interest on bare trust for the trustees of the Buckingham Administrators Remuneration Trust, under a fiduciary services agreement dated July 7, 2016.
Mode and Tregunno challenged AXA’s avoidance through correspondence and by bringing two complaints to the Financial Ombudsman Service, both of which were rejected - first on May 26, 2020, and again on August 22, 2022. Despite these setbacks, Mode and Tregunno issued proceedings on September 26, 2024, seeking declaratory relief, specific performance of the insurance contract, damages under section 138D of the Financial Services and Markets Act 2000, and other relief.
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.
A central issue was whether Mode could pursue specific performance of AXA’s secondary liability to restore Mode to its pre-loss position, or whether the claim was time-barred. The court found that both the right to claim under the policy and to damages arose on the date of the fire, and that the claim for damages was statute-barred. The judge rejected the argument that specific performance could be used to get around the limitation period, finding no real prospect of success for such a claim.
The court also considered Mode’s attempt to claim damages under the Financial Services and Markets Act but found that as a business entity, Mode did not qualify as a “private person” under the relevant regulations. Claims brought by Tregunno under the Fire Prevention (Metropolis) Act 1774 were dismissed as well, since they depended on Mode’s main claim proceeding.
In the end, the court granted summary judgment and struck out all claims against AXA, finding no compelling reason for a trial. For UK insurance professionals, this case is a timely reminder: policy wording, disclosure, and timing are critical. For insurers, the case highlights the importance of thorough underwriting and prompt action when misrepresentation or non-disclosure is suspected. For brokers and policyholders, it’s a lesson in the risks of delay and the need for clarity in every step of the insurance process.
This judgment is a straightforward example of how UK courts deal with commercial insurance disputes - where timing, transparency, and the details in the policy can make all the difference.
