Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Names predict £435m damages

William Gleeson
Thursday 06 April 1995 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The 3,000 litigating Lloyd's of London names on the Gooda Walker syndicates last night claimed they could get at least £435m in compensation for their losses in the insurance market.

The claim follows a High Court ruling that laid out the principles by which any maximum compensation is to be calculated.

The names on the Gooda Walker syndicates ran up £1bn of losses between 1988 and 1990. Last October a High Court judge decided they were the victims of negligent Lloyd's agents.

The same High Court judge, Mr Justice Phillips, has now decided on the principles for calculating the names' award. The two sides in the case, the names and the agents' insurers, are in the process of agreeing the figures to be derived from the principles outlined in today's ruling.

The names expect total damages to fall between £435m and £561m.

The judge has decided the names are entitled to the losses they have paid so far and the names say this is worth £267m to them.

The judge has awarded the names interest on sums to be paid out in compensation, which the names say is worth £87m. However the solicitors for the agents insurers deny that any figure for interest has been agreed.

The settlement is not to be full and final, so names will be able to go back to court in future years to claim damages for any losses not yet reported by the Gooda Walker syndicates.

The judge decided it was too difficult to assess the level of future losses and related damages immediately. But the names estimate that the damages they will receive for future losses will be between £61m and £172m.

There will, the names say, also be £20m-£35m in other damages payable.

Michael Payton, the solicitor for the agents' insurers, cast doubt on the size of the payment to be paid to names. Mr Payton said: "No figures have been agreed. The interest is to be the subject of further hearing on May 10 and there are fundamental differences on this. They have specifically not been given an indemnity."

Mr Payton said the names would receive no money at all until after further hearings had been completed.

The Court of Appeal is to decide at the end of this month on whether Gooda Walker names can be paid now or must wait until after all Lloyd's litigation has been resolved - a process that could take till the end of the century.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in