International networks could still get cover for disastrous mistakes by their related member firms, despite those firms invalidating the terms of the cover, a court has indicated.

Grant Thornton International has won its battle to secure cover from insurers Brit, in relation to Parmalat claims in a case that offers some support for networks, though the court said the relationships remained uncertain from a legal point of view.

The international network had previously been denied cover after a ruling by the Court of Appeal because its former Italian member firm, Italaudit, had not claimed under the policy, a decision reversed unanimously by the House of Lords.

‘If individual member firms are between themselves given full cover… incurred by reason of their membership in GTI, it would seem very odd that GTI itself did not enjoy similarly full cover in respect of claims,’ said Lord Mance.

The ruling suggested that GTI constituted a ‘firm’ within the meaning of the insurance contract. The ‘firm’ could not forfeit its insurance on the basis that another network member had forfeited its own cover.

Barlow Lyde & Gilbert partner Simon Konsta said it would be ‘dangerous’ to make conclusions of broad application of the decision, due to a lack of policy for the courts to draw on and each case turning on specific wording within insurance documents.

‘Notwithstanding the positive result for GTI in this instance, this litigation as a whole demonstrates how expected or intended cover on these policies can potentially be subverted by ambiguous or unclear wording,’ said Konsta.

A spokeswoman for Grant Thornton International said that the decision was ‘welcome’.

She added: ‘We’re very pleased it went in our favour, it was the right decision.’

It is understood that the US courts are considering hearing claims against GTI by lawyers representing Parmalat.

The trial of 55 defendents involved in the collapse of the dairy group opened in Parma this week, but without founder Calisto Tanzi.