i-law.com - Newsletter (Liability Risk and Insurance)

RSA doubles in-house law department #

01 May 2000

To allow for much of its lower-value legal work to be performed in-house, Royal & SunAlliance has doubled the size of its legal department, bringing the staff total above 100 and nearing 50 lawyers. Responding to..

D&O over net #

01 May 2000

Fusion, the online subsidiary of Lloyd’s managing agency SVB, plans to offer directors’ and officers’ insurance over the internet, claiming this as a first in this field. Responding to new legislation and aimed more widely than..

‘Mitsui’ syndicate for Lloyd’s #

01 May 2000

A new syndicate, operating under the number 3210 and managed by Chaucer Syndicates and with active under-writer Allan Guest, will be the largest with Japanese financial backing of Mitsui Marine International. The syndicate will write..

Lloyd’s win-win #

01 May 2000

As the main hearing gets under way, Lloyd’s appears to be mopping up the other legal challenges from Names. The Court of Appeal has reenforced the bankruptcy order (set aside at one stage) on Geoffrey..

Lloyd’s forecasts #

01 May 2000

The appointment of a chief analyst from outside, Douglas Morgan, is a first step to improved forecasting of Lloyd’s results. His remit will be to independently check the forecasts of syndicates underwriting at Lloyd’s which,..

Correction #

01 May 2000

Last month, in reporting Aon’s new range of products for solicitors, we suggested it was working on this with HSBC Insurance Brokers. This was incorrect, and we apologise for the error. Aon has no relationship or..

Slave labour compensation agreed #

01 May 2000

German and US negotiators have agreed the distribution of DM10bn compensation to an estimated 870,000 surviving slave labourers under the Third Reich. Some DM8.25bn will be paid direct. Those who were held in concentration camps..

Dog bites man #

01 May 2000

Last year 7,000 postmen were bitten by dogs, with around 10% needing time off work to recover. One postman retaliated, kicking the dog away (causing injury that led to its death). RSPCA action against Billy..

Leader L: structural faults #

01 May 2000

Echoing the ongoing questions regarding the Erika , investigation into the loss of 18 lives and the sinking of bulk carrier Leader L on 23 March 2000, the worst bulker loss since 1998, indicates that structural..

Erika: Rina report #

01 May 2000

Full details of the report from Italian classification society Rina on the loss of the Erika and subsequent serious pollution of the French coast, appears in Lloyd’s List 10 April 2000. The report was prepared..

Insidious criminal coverage? #

01 May 2000

A ruling by the Alaska Supreme Court requiring defence against a child molestation suit from a homeowners’ policy insurer follows hard on that of Oregon Supreme Court that smoke damage from the landlord’s illegal methamphetamine..

Awards and settlements #

01 May 2000

The Criminal Injuries Compensation Board received 78,900 applications and made payments of £195mn to 46,000 victims of crime in 1999. Since it was set up in 1964, payments have totalled £2bn. These range, for example,..

Events #

01 May 2000

Whiplash 2000 16–18 May • Assembly Rooms, Bath • Covering the current state of knowledge on motor whiplash injuries and what is – or can be – done about this costly problem with detailed examination of..

Case update #

01 May 2000

Subject Damages for pain, suffering and loss of amenity Result This head of damages in personal injury cases is to be increased in order to produce fair, reasonable and just compensation. This is on a rising..

People on the move #

01 May 2000

James Crabtree moves from Stephenson Harwood to join Pinsent Curtis as partner. As part of expansion of its insurance and reinsurance practice, he will bring a wealth of international experience. Elizabeth Bramwell, former editor of the..

Cover for more South Korean workers #

01 May 2000

Businesses in South Korea with four or less employees will, from 1 July, have to meet the same requirements as larger enterprises in providing industrial accident compensation. Additionally, suicides due to work-related stress will also..

MASS launches Feeprotect #

01 May 2000

The Motor Accident Solicitors Society has launched a conditional fee insurance scheme for its members: Feeprotect. This in association with Amicus Legal. Details: tel 01206 366 500 ..

Linklaters net #

01 May 2000

Leading City law firm Linklaters is to set up a separate company to market internet-based legal services. Blueflag.com will be launched on 30 June of this year. This will initially sell Linklaters’ Blueflag range of..

New name: DLA #

01 May 2000

City firm of solicitors Dibb Lupton Alsop is to change to DLA from May. The international network is already known as DLA & Partners. ..

EU internet rules free solicitors #

01 May 2000

The common position adopted by European ministers that those offering services via the internet need only comply with the rules of their country of origin has implications for cross-border legal services. In effect, UK solicitors..

Cross-border merger #

01 May 2000

The first merger to overcome the differences between English and Scottish law comes into being on 2 May 2000. Dibb Lupton Alsop merges with the Scottish-based practice of Bird Semple. This is part of a long-term..

Lower damages against solicitors #

01 May 2000

Following the High Court decision of Justice Neuberger in construction case Harrison v Bloom Camillan , damages awarded for negligence by solicitors could drop by up to 20%. In this case, damages were awarded in respect..

…Complaints #

01 May 2000

New cases for the Office for the Supervision of Solicitors (OSS) rose in 1999 by 3% to 20,352, with complaints against solicitors only marginally up to 17,177. Applications to the Solicitors Compensation Fund fell by 19%..

Solicitors… #

01 May 2000

Following the trend that has shown a 34.5% income increase over the last five years, annual stats from the Law Society show that gross fees for solicitors in the year 1997–8 rose by 8.3% to..

Accountants and law firms to compete? #

01 May 2000

An inquiry by the Office of Fair Trading into anticompetitive practices within the professions could lead to an open market of competition in the provision of high street legal services between law firms and accountants. This..

International Dispute Resolution Centre #

01 May 2000

Financially supported by six top City law firms, the International Dispute Resolution Centre – which has already hosted 20 mediations since February – has opened in London. Space and facilities are made to address the..

Mediation moves still weak #

01 May 2000

At the 10th anniversary of the formation of the Centre for Dispute Resolution, a survey shows that less than two-thirds of 200 companies with turnover in excess of £10mn have received advice from their lawyers..

Less high court actions #

01 May 2000

The number of actions started in the High Court in 1999 fell to almost half that of 1998 – from 152,412 to 79,068. This is by a parliamentary answer from the Lord Chancellor. This could,..

£40mn set aside for human rights litigation #

01 May 2000

The taking-effect of the Human Rights Act, in October of this year, is expected to lead to a spate of litigation: schools facing action over uniforms and other matters of personal behaviour; police challenged on..

Legal aid provisions end #

01 May 2000

From 3 April, legal aid funding was no longer available for virtually all personal injury claims or business disputes; it is estimated this will affect around 80,000 cases a year. Hand in hand with this..

Company law review #

01 May 2000

A consultative document (comments by 15 June/28 July 2000), Modern Company Law for a Competitive Economy: Developing the Framework addresses ‘an improved and modernised framework for all companies, with some significant proposals for reshaping the..

Consultation: discount rates and alternatives to lump sum payments #

01 May 2000

The Lord Chancellor’s Department has published a consultation paper, looking at the discount rate on lump sum awards for personal injury claims under the Damages Act 1996. At present these are calculated by taking an estimate..

Less than expected ‘pain and suffering’ #

01 May 2000

Despite widespread insurer fears, the Court of Appeal has, firmly and definitively until changed by legislation, set far lower guidelines for increased awards for general damages than recommended by the Law Commission. No increase below £10,000,..

QBE to sell off part of Iron Trades #

01 May 2000

Australian insurance group QBE, which acquired UK Iron Trades earlier this year for A$445mn, plans to close the provincial division and sell the retail and healthcare divisions. QBE will, however, retain the profitable national division, which..

New medmal facility #

01 May 2000

The first such in the last 10 years, a new medical malpractice facility is launched by Denham Syndicate 990. Backed by a panel of underwriters, cover of up to £20mn available for all sectors of..

European insurers’ liability gross premiums 1998 #

01 May 2000

The table includes companies with gross written premiums for general/third-party liability in excess of US$100mn. Ranked using the conversion rate current at the accounting year-end, it does not include those companies that do not provide..

Failure to prosecute unlawful #

01 May 2000

A first such judicial review has found that the Director of Public Prosecutions (DPP) acted unlawfully in refusing to bring manslaughter charges against a company and its director on grounds of there being no reasonable..

VAT ruling on pension work #

01 May 2000

The Court of Appeal has ruled, on application from Century Life, that pension reviews carried out on behalf of insurers by third parties are not subject to VAT. This is in line with other insurance..

Data protection advice #

01 May 2000

Experian, a leading information solutions provider, has published a guide – blessed by a foreword by Elizabeth France of the Data Protection Commission – on the new obligations on businesses that hold or process a..

Y2K sue and labour claims #

01 May 2000

Nine major cases have been launched in the US in which businesses claim recoupment of pre-millennial remediation work; GTE Corp seeks US$400mn from Allendale Mutual Insurance and others. Xerox, Mike, Unisys, ITT and K-Mart are..

Stock exchange focuses minds #

01 May 2000

Speculation on possible legal action from investors and brokers, following the London Stock Exchange eight-hour computer failure on budget-sensitive Wednesday 5 April, could focus the minds of IT providers. At present, during FSA investigation, polite ‘discussions’..

Yahoo! posting leads to suit against insurer #

01 May 2000

Creditrust Corp, purchaser of consumer debt from lenders, has filed suit against its own insurer Asset Guarantee Insurance Co, Enhance Financial Services Group (EFS) and EFS former senior vice-president Charles Henneman seeking US$520mn in damages...

Internet libel #

01 May 2000

In the first cyberspace libel case to reach the High Court, internet service provider (ISP) Demon Internet admitted publishing libels – and will pay damages of £15,000 overshadowed by an estimated £480,000 in costs. Physicist Laurence..

Compensation for worker’s suicide #

01 May 2000

The Supreme Court of Japan has ordered advertising agency Dentsu to pay compensation to the family of Ichiro Oshima, who killed himself after becoming depressed because of overwork. Overturning an earlier ruling, the court held..

VWF talks extended #

01 May 2000

Involved firm of solicitors Jacksons reports that contractors being sued for vibration white finger injury have joined discussions with the DTI on the scheme of compensation for former employees of British Coal. But, failing solution of..

Backache? Back to work! #

01 May 2000

New advice from the Faculty of Occupational Medicine and the British Occupational Health Research Foundation advise that the vast majority of those suffering from backache – 40% of the population – should return to work..

Stress warning #

01 May 2000

The head of legal affairs at the Engineering Employers Federation in northwest England, Sandra Howard, has warned employers that stress-related compensation claims are due to rocket. This comes both from greater awareness of employee rights..

Nurse wins Cidex claim #

01 May 2000

With many others awaiting the outcome, former operating theatre nurse Fostina Brobbey has won a record £157,000 compensation for occupational asthma caused by the use of sterilising chemical Cidex. Known to cause breathing difficulties and skin..

HIV a disability? #

01 May 2000

Settlement has prevented exploration at tribunal of what could become one of a number of claims. Supermarket manager Mark Hedley was given three months’ leave while undergoing treatment for HIV infection, but when he wanted..

First public interest disclosure case #

01 May 2000

Accountant Anthony Fernandes was dismissed from Netcom Consultants for gross misconduct. This, coincidentally, followed his complaint to the chairman of US sister company about his boss’s expense claims. He is now claiming unfair dismissal in..

PI awards – insurers’ views taken into account #

01 May 2000

The insurance industry has been awaiting with great interest the outcome of a number of test cases in the Court of Appeal. The test cases concerned whether non-pecuniary loss (‘pain and suffering’) damages should be..

High seas law not applicable to flight 800 #

01 May 2000

The US Court of Appeals (second circuit) has ruled that claims arising from the 1996 crash of Transworld Airlines flight 800 off the coast of New York state are not governed by the Death on..

High seas law not applicable to flight 800 #

01 May 2000

The US Court of Appeals (second circuit) has ruled that claims arising from the 1996 crash of Transworld Airlines flight 800 off the coast of New York state are not governed by the Death on..

Sleipner inquiry #

01 May 2000

At the opening of hearing on the loss of the ferry and 16 lives, it emerged that no single person was responsible for ‘safety culture’ at shipowner Hardanger Sunnhordlandske Dampskipsselskap. No one had the specific..

Derbyshire inquiry opens #

01 May 2000

The first maritime inquiry to be opened by an attorney general since that on the Titanic , the second inquiry into the loss of 90,000 ton ore/bulk/oil carrier Derbyshire has opened. One of six ships of..

Oil spill rules #

01 May 2000

The European Commission has put forward tighter rules on prevention of oil pollution, single-hull tankers being banned from EU waters in three stages (on the same basis as from US coastal waters). Three key dates,..

BNFL to run Aldermaston #

01 May 2000

Despite recent woes, British Nuclear Fuels, as part of a consortium of US Lockheed Martin and another British firm, Serco, will replace Hunting Brae to run the Atomic Weapons Establishment at Aldermaston. As AWE Management Ltd..

‘We could call ourselves Windscale again’ #

01 May 2000

So said a cartoon in the Financial Times , commenting on the growing woes of BNFL’s Sellafield operations. Does it matter to insurers? Recent results for Cox Syndicate indicate that nuclear coverage doing well, yet the potential..

Airbag contamination? #

01 May 2000

Dr Eric Betterton of the University of Arizona (reported in Science Briefing in The Times 5 April 2000) is concerned at spread and disposal of sodium azide (‘as powerful a poison as sodium cyanide’) from..

Cyanide warning in PNG remains in force #

01 May 2000

Despite claims by Australian mining company Dome Resources NL that a cyanide spill at its operations in Papua New Guinea (PNG) had been cleaned up, PNG emergency services are still warning that drinking water is..

Further Tisza pollution #

01 May 2000

A further spill of heavy metal-laden materials occurred at the Baia Borsa mine in Romania at the end of March, due, according to officials, to weather conditions and human error. The Environment Ministry, however, blamed..

Contaminated land inspection #

01 May 2000

From 1 April this year, local authorities in England (similar provisions apply to Scotland and Wales) have a duty to inspect their areas to discover contaminated land and ensure cleanup (in conjunction with the Environment..

Voice of America: sex discrimination #

01 May 2000

Some 23 years ago a number of women in various media positions filed suit against Voice of America and former parent United States Information Agency, claiming to have been denied jobs and promotions because they..

Glioma settlement #

01 May 2000

BP Amoco has settled six suits on behalf of former employees at the Naperville research centre. The company acknowledged it was likely this rare form of brain cancer was the result of research work it..

Aetna agrees Texas regulation #

01 May 2000

The largest US health insurer has agreed broad regulatory power to the state of Texas. While it will have no direct impact on seven class actions outstanding against Aetna (or actions against other insurers) this..

US seeks first place in implant queue #

01 May 2000

A suit filed by the US Justice Department seeks to recover the cost to federal healthcare plans of the treatment of women suffering injuries from silicone breast implants. It further seeks recovery – from the..

Fen-Phen objections #

01 May 2000

By 30 March, the last day for opt-out from the national settlement of claims arising from the use of the slimming drug, around 45,000 of the 6mn potential claimants have done so, seeking to pursue..

Tobacco update #

01 May 2000

‘Engle’ jury verdict sets US$12.7mn compensatory damages for three sample smokers. This almost equals the US$13.2mn sought by lead lawyer Stanley Rosenblatt. Analysts, while expecting the result, had forecast considerably lower damages. This is of great..

BSE, CJD and OPs #

01 May 2000

Mandatory cattle tests throughout Europe agreed, with backing by the European Commission acting on advice from the EU Standing Veterinary Commission, to discover the extent of BSE infection. From January 2001 at least 10% of the..

CJD infections in Japan #

01 May 2000

Claims are being launched in respect of some of at least 65 people in Japan, infected with CJD allegedly through the medical use of tissue collected from European corpses, many supplied by German company B..

Growth hormone contamination #

01 May 2000

Investigations into CJD infection of children in France, from unscreened growth hormone treatment (74 have so far died) indicate that a batch of hormone used in 1985, prior to safety checks, was found to be..

MMR back in the frame? #

01 May 2000

New research has produced a strong indication of a link between the triple vaccine (against measles, mumps and rubella) and chronic illness and autism in children. Evidence was presented to the US Congress by Prof O’Leary,..

Organ removal guidelines #

01 May 2000

The Royal College of Pathologists has issued guidelines on information to, and consent from, relatives prior to organ removal and retention in postmortem examinations. This is in response to the revelations on widespread storage (2,000..

£3.4bn negligence liabilities #

01 May 2000

As part of a depressing report on the financial state of the National Health Service (NHS), the National Audit Office reported potential liabilities for clinical negligence of £2.4bn at March 1999. A £600mn increase over..

Japanese GM response #

01 May 2000

Consumer groups in Japan have forced a change in one of the world’s largest importers of genetically-modified (GM) foods, with government introduction of a compulsory labelling scheme from April 2001. An early response to this..

‘Crops of liability’ #

01 May 2000

This is the heading of a report from NAC Re (Liability Bulletin issue 2000–1) on potential liabilities from genetically-modified (GM) crops growing in the US. Noting the multiple arms of regulation – US Department of Agriculture..

Seed manufacturer not negligent #

01 May 2000

An interesting Australian decision is reported in law firm Phillips Fox’s insurance law Focus , February 2000. A class action of 200 farmers sought to recover damages from canola seed manufacturer Cropmark New Zealand and Australian..

French farmers target feed producers #

01 May 2000

Despite compensation ranging from £300 to £7,000 for slaughter of BSE-suspect cattle, French farmers are seeking the cause of continued infection within their herds. On the basis of an EC report showing almost 5% of animal..

Increase in pasteurisation time required? #

01 May 2000

Research by Prof John Hermon-Taylor of St George’s Hospital, London, suggests that MAP (mycobacterium avium, subspecies paratuberculosis) is responsible both for the wasting illness of cattle, Johne’s disease, and the incurable human bowel condition Crohn’s..

Food Standards Agency #

01 May 2000

At the start of business, the new Food Standards Agency (FSA), funded by £110mn public money and £40mn from industry levies and headed by professor of zoology and chairman Sir John Krebs, has gone straight..

Mobile phones #

01 May 2000

While emphasising there is no proven harm from radiation emissions from mobile phone kits, research for the Consumers’ Association magazine Which? (April 2000) shows unexpectedly high levels from some models. Tests on two handsfree kits showed..

‘Harding’ helicopter claim fails #

01 May 2000

The claim for damages under the Fatal Accidents Act by the widow and mistress of Matthew Harding, alleging pilot ‘recklessness’, has been rejected on appeal with the decision of the High Court upheld. This means..

Peacekeeper loses claim #

01 May 2000

A soldier, Sgt Walker, who lost a leg while on peacekeeping duties in Bosnia does not qualify for compensation under the Ministry of Defence scheme for troops injured while abroad by crimes of violence. His injury..

Protection from bullying at school #

01 May 2000

The parents of a seven-year-old girl are seeking judicial review on handling of allegations of physical and verbal abuse by her school, King’s Lodge in Chippenham. Mr and Mrs Stewart are taking this action to..

London Underground barriers #

01 May 2000

A man who lost his lower leg when he fell from the platform between two carriages of a London Underground train is seeking damages of £1mn. This is based on its failure to provide ‘intercar..

HSE criticises track faults, and itself #

01 May 2000

The third interim report from the Health & Safety Executive (HSE), just prior to the opening of Lord Cullen’s inquiry into the 31-death disaster, suggests track fault as a possible factor. A track joint ‘with..

We all have a role to play in cutting road cost #

01 May 2000

Road accidents are such a part of life that, except for the personal frisson as one passes an ambulance-attended wreck, they pass without notice. Motor insurance is a world of its own, and while safety..

Print Editions

Liability Risk and Insurance