Fraud claims ruling deals blow to Lloyd's
The ruling by the US Courts of Appeal for the Ninth Circuit is potentially damaging for Lloyd's, which intends to appeal. If its appeal fails, it will not be able to pursue its own claims for payment to cover previous years' losses from the 200-plus names who brought the proceedings.
"This is a banner day for US names," said Jeffrey Peterson of the American Names Association, based in California. About 600 investors filed the original suit in 1994, but many agreed to Lloyd's restructuring plan and abandoned the claim.
The latest ruling overturns a lower court decision in 1995 which said that the US names had to file suits in England, as provided in the original contracts between Lloyd's and most of its investors.
"Congress had already determined that such [contracts] were void," said the appeals court in San Francisco. "It was not for a court to weigh their reasonableness, not for a court to say whether they offended any policy of the United States."
The Securities and Exchange Commission, the leading US regulator, said the new ruling would help prevent sales abuses by foreign brokerages.
News of the ruling came on the day that Lloyd's announced that it had fined Sedgwick Oakwood Lloyd's Underwriting Agents a record pounds 60,000 for two cases of misconduct.
The penalty was one of six issued against Lloyd's agents or brokers in the last three months, according to the statistics that were published yesterday for the first time by the insurance market.
A spokesman for Lloyd's said the figures gave the first indication of the activities of the new regulatory regime introduced in the summer under David Gittings, who was hired from the Securities and Futures Authority, the City regulator.
Lloyd's said that during 1996 some 55 formal warnings were issued while so far this year 20 warnings have been issued for compliance breaches.
Last year Lloyd's also introduced an individual registration process, which has so far resulted in 32 applications being withdrawn or refused and 38 restricted by the imposition of conditions.
Have shock jocks gone too far after Rush Limbaugh called Sandra Fluke a slut?
Former Google exec says he has 100,000 emails showing how 'immoral' company avoids paying UK tax
British business: We need to stay in the European Union - or risk losing up to £92bn a year
World news in pictures
British father faces charges after confessing to slitting his two children's throats in Lyon flat
- 1 British business: We need to stay in the European Union - or risk losing up to £92bn a year
- 2 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 3 Sam Wallace: The second coming of Jose Mourinho at Chelsea will be a reunion that can only end in tears
- 4 Civil partnerships amendment 'could wreck' gay marriage Bill, Government sources warn
- 5 It’s official: thanks to Stephen Hawking's Israel boycott, anti-Semitism is no more
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£500 - £680 per day: Orgtel: Quantitative Risk Analyst, Front Office/Risk Bank...
£55000 - £60000 per annum + Benefits + Pension: Orgtel: Quantitative Analyst, ...
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...
£450 - £500 per day: Orgtel: Sourcing Manager - Banking - London - Up to £500p...