Lloyd's acts to get first claim on cash awards

Lloyd's of London, the insurance market funded by individuals, further angered its litigating names yesterday by reviving a plan to ensure that any court awards they win will go straight to offsetting losses in the market. The ruling Lloyd's Council is seeking permission from the Department of Trade and Industry to amend members' premium trust deeds, which govern the relationship between Lloyd's and its members, to ensure that the proceeds of litigation are covered by the deeds.

The move was sparked by fear that names would refuse to use any court awards to pay their Lloyd's liabilities.

David Rowland, Lloyd's chairman, said that the planned amendments had been given urgency by a recent court judgment that any awards to Lloyd's names be made on a "first past the post" basis.

That means that when the errors and omissions insurance cover held by the agents being sued runs out, names who are further down the litigation ladder would lose out because there would be no money left to pay any awards.

The High Court also began hearing an application by the Gooda Walker names for an interim award following their win in the courts last year. The damages they are entitled to are estimated at more than £500m.

Lloyd's first proposed amending the premium trust deeds in October, but shelved the plan in the face of fierce opposition from names and in the hope of agreeing an overall settlement with all the litigating names before any awards were made.

In a letter to names explaining the move, Mr Rowland attempted to reassure them that a settlement was still being pursued.

"We still believe a settlement offers the best chance of a fair resolution of the disputes," Mr Rowland said.

"We shall continue to work to achieve this. But in the meantime, Council have concluded that, because circumstances affecting litigation recoveries have changed in the past two months, it is necessary now to seek the Secretary of State's consent."

Michael Deeny, chairman of the litigating names' committee and of the Gooda Walker Action Group, said: "Lloyd's explanations lack credibility. It has been known that there would be a Gooda Walker application for an interim payment since October. The decision in favour of `first past the post' was widely expected and the Lloyd's underwriters involved in the case actually argued for this principle.

"No settlement negotiations have taken place since Lloyd's announced the proposed changes. One has to begin to question the sincerity of Lloyd's interest in a settlement of the litigation."

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
musicOfficial chart could be moved to accommodate Friday international release day
Sport
Wes Brown is sent-off
football
News
i100
Sport
Italy celebrate scoring their second try
six nations
Sport
Glenn Murray celebrates scoring against West Ham
footballWest Ham 1 Crystal Palace 3
Arts and Entertainment
Drake continues to tease ahead of the release of his new album
music
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower