The lower court still held the insurance co to be liable to pay!!!
The Court considered that the insurance company could have reasonably checked its own records.
The higher Court overturned the judgement (that it was by majority is irrelevant) and I refer you again to the comment that "The load capacity of a particular airplane and the number of passengers to be carried is highly relevant information that is of critical importance to the insurer."
Therefore the lower Court decision is legally irrelevant, I wonder why you find the need to quote it?
Please note LOAD CAPACITY. You will note, if you check your Oxford Dictionary, that capacity is defined as the maximum amount that something can carry. Amount is defined as the number, value, size or extent, so whether it is the number of seats or the weight would seem to be irrelevant.
If you are intending to operate outside the parameters set in the POH, which is you may remember is part of the C of A, then you should disclose this to your insurers.
Of course, you can choose not to.
IO540
I can of course see your point about disclosure, but motoring law isn't anything like aviation law.
I agree, it is a subset of Maritime law.