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

Changes in shareholder suit coverage #

01 September 2001

Leading US liability insurers including Chubb and American International Group are changing the terms of cover for corporate executives and board members faced with suits from disgruntled shareholders. Moving from total coverage (minus deductible) many policies..

Legal expense insurers recoup cover #

01 September 2001

Ernst & Young’s (E&Y) legal expenses insurers will recoup US$125mn from several Lloyd’s syndicates and some AIG subsidiaries, following a New York jury decision (reported in the Wall Street Journal , 30 July 2001). Stemming from the..

Rules for solicitors’ PI insurance #

01 September 2001

New rules for professional indemnity insurance for solicitors come into effect from 1 September 2001. These include a requirement of disclosure of qualifying insurer, changes to the reimbursement right of the insurer and terms for..

R J Kiln takes over medmal business #

01 September 2001

R J Kiln & Co is set to take over Crowe’s syndicate 1204 medical malpractice liability business, years of account 2000 and 2001 as well as future business, from October. Crowe plan to concentrate on..

Insurers reserve for levy #

01 September 2001

Analysts expect the Policyholders’ Protection Board (PPB) will have to impose the first additional levy for eight years in the light of recent collapses. Probably in the region of £70mn, this will far outstrip the £5mn..

Bridgestone threatens safety regulator #

01 September 2001

As the Firestone/Ford tyre wrangle rolls on, Japanese parent company Bridgestone has stepped up their threat to sue US regulator NHTSA if it determines that Firestone tyres are defective and orders a further recall. President Shigeo..

CNA makes asbestos reserves #

01 September 2001

A US$2.1bn strengthening of reserves – around half in respect of old asbestos and environmental claims – has pushed CNA Financial into an operating loss of US$2.08bn (net loss US$1.8bn) for the second quarter of..

Equitas tightens on asbestos claims #

01 September 2001

Along with increased provision of £1.7bn, bringing asbestos reserves to £8bn, Equitas (as other London market players) has tightened the terms of payment on asbestos claims. Defendants facing multitudes of claim have been opting for..

Awards and settlements #

01 September 2001

Paralysed on a school skiing trip, the school was found 50% liable for the injuries of a 17-year-old boy. The court ruled the school was ‘in breach of duty of care because it failed to..

Ombudsman for NHS professionals #

01 September 2001

A consultation document is out on the appointment of an ombudsman to hear complaints about maladministration by professional bodies working in the National Health Service, including the General Medical Council. This stems from the Kennedy..

Protocol facilitates negotiation #

01 September 2001

A professional negligence preaction protocol, in force in late July 2001, make provision for parties to negotiate unless a claim is denied in its entirety. It also provides that letters of claim that differ from..

Hidden dissatisfaction with solicitors #

01 September 2001

Those involved in the fast-changing market of solicitors’ professional indemnity cover would do well to consider the findings of consumer magazine Which? Examination of the real level of client dissatisfaction with solicitors suggests it could be..

Enforcing solicitors to need more cover? #

01 September 2001

Proposals in a green paper issued by the Lord Chancellor’s department would require solicitors who enforce court orders to be licensed, pay into a compensation fund and take out additional indemnity insurance. This is part..

FSA for law firms #

01 September 2001

The Financial Services Authority (FSA) is to take on a regulatory role from 30 November this year for law firms carrying out mainstream investment business. But only about 250 of the estimated 7,500 law firms currently..

Limitation recommendations #

01 September 2001

Law Commission Report No 270, issued on 10 July 2001, recommends that the Limitation Act 1980 be repealed and replaced by a new act applying single limitations, as far as possible, for all claims of..

Third Parties (Rights Against Insurers) repeal? #

01 September 2001

The Law Commissions of England, Wales and Scotland are to recommend the repeal of the Third Parties (Rights Against Insurers) Act of 1930. While this allowed injured parties to claim from an insurer where the defendant..

Labelling #

01 September 2001

FSA fines The Food Standards Agency (FSA) is to target misleading labelling with fines of up to £5,000. Even though most consumers see through the guff, there is ‘far too much meaningless drivel and sloppy, emotive,..

AIG covers services over internet #

01 September 2001

American International Group has introduced an endorsement to its financial institutions liability policies to extend cover to professional services performed through the internet. Coverage limits are available up to US$25mn, based on overall revenue rather..

ePolicy.com D&O #

01 September 2001

Philadelphia Insurance, through ePolicy.com Insurance Services, is offering online directors’ and officers’ cover for directors and officers of nonprofit organisations within 48 states. It covers officers and the entity itself for the usual range of..

Claims Direct #

01 September 2001

‘There should, after all, be a market for this kind of claims management business, after removal of legal aid for most personal injury claims. The huge unknown is whether Claims Direct’s management can resuscitate its..

Royal London faces fine and expense #

01 September 2001

Following investigation by the Personal Investment Authority (PIA) of misselling of endowment and life insurance by Royal London staff, the Financial Services Authority (FSA) has imposed one of the highest fines, £400,000. But this is peanuts..

Bad news for retired professionals #

01 September 2001

As a result of a £10,000 claim arising from failure to notice cracks in a wall while conducting a £70 mortgage survey, and a decision of the County Court in Truro, a new class of..

Compensation for misselling #

01 September 2001

Supporting the original view of the Personal Investment Authority’s (PIA) ombudsman, the High Court has ruled that any windfalls, due to demutualisation or merger, received by victims of pension misselling are not to be set..

Foreseeability hurdle to stress claims #

01 September 2001

A note from Beachcroft Wansbroughs (whose Patricia Baxter represented the successful employer-defendant) confirms that courts are still seeking evidence of foreseeability of injury in stress-related claims. In Lynn Jarrett v Aegis Security Enclosures Ltd the judge..

Industrial Injuries Advisory Council #

01 September 2001

The report of the IIAC for 2000 shows ongoing review of the schedule of prescribed diseases and consideration of a number of potential categories of disablement. Discussions have also been held on the future of..

MoD payouts #

01 September 2001

The Ministry of Defence (MoD) paid out £97mn to injured service personnel during 2000 (£83.4mn in 1999). The largest individual award was £3.67mn to a soldier now needing constant nursing care following shock from overhead..

Accidents not investigated #

01 September 2001

New research from the Health & Safety Executive (Accident Investigation – the Drivers, Methods and Outcomes, CRR 344/2001) indicates many employers are failing to properly investigate and assess accidents at work. Aspects include: There is..

Cancer suit by tyre workers #

01 September 2001

A suit has been launched by two sick workers and two widows against Uniroyal Goodrich tyre plant in Tuscaloosa, Alabama alleging workplace exposure to chemicals led to various types of cancer. Four other workers have..

OP injury claim rejected #

01 September 2001

A claim by a farmer alleging neurological damage from exposure to organophosphates (OPs) in sheep dip has been rejected by the High Court. Mr Justice Morland is as yet to give reasons but a recent report..

Child labour in Camberley #

01 September 2001

Two McDonald’s fast-food franchise outlets in Camberley have been fined for repeatedly, and after warnings, employing children late at night on school days without permits. One child worked from 5pm until 2am on a school..

Part-time working rights #

01 September 2001

A government taskforce is due to report in November on replacement of the existing right to part-time work (under the Sex Discrimination Act) with a new right for parents to request flexible working hours. The..

Minimum pay arrears #

01 September 2001

Arrears of pay totalling almost £5mn have been paid since the introduction of the minimum wage two years ago, £3mn of this in the year ending April 2001. Figures from the Department of Trade & Industry..

Claims of sexual orientation #

01 September 2001

Following the same line as the Scottish Court of Session, in the recent MacDonald claim the Court of Appeal has confirmed that discrimination against a lesbian teacher, based on sexual orientation, is not covered by..

Irish accident rate too high #

01 September 2001

The first study of its kind suggests the accident toll in Ireland could be reduced so as to save 1,500 lives a year, and many times more injuries. Injury in Ireland , by Elaine Scallan and colleagues..

Rail safety #

01 September 2001

The report for the three months April to June of this year from industry safety body Railway Safety shows a further increase in SPADs (signals passed at danger) to an average of two per day...

Guidance for directors #

01 September 2001

New guidance notes from the Health & Safety Commission address the health and safety responsibilities of directors and board members of public sector and voluntary organisations relating to employees, contractors’ employees and members of the..

Workplace deaths rise 34% #

01 September 2001

Figures from the Health & Safety Commission show a 34% increase in workplace deaths in 2000. The 295 fatalities pushed levels up from 0.8 to 1.1 per 100,000 employees. The number of deaths in the construction..

Dry ice in the hold #

01 September 2001

Following an incident in which a crew of a Douglas DC-8 cargo aircraft almost suffocated, the US National Transportation Safety Board is pressing the Federal Aviation Administration to carry out tests on safety aspects of..

Concorde to fly, some claims still lie #

01 September 2001

With broad upgrades completed and confirmation from the official inquiry that last year’s crash was caused by a burst tyre rather than poor maintenance, Concorde is due to fly again soon. The families of the 97..

…and Britain #

01 September 2001

A letter of claim has been sent to American Airways, British Airways (BA) and other leading names by Watford-based transport litigation specialist Collins Solicitors. It has been approached by many people believing they have suffered deep..

DVT claims launched in Australia… #

01 September 2001

Australian law firm Slater & Gordon has filed suits in the Victoria Supreme Court against three international airlines – KLM, Qantas and British Airways – and the Australian air safety body CASA. The airlines are..

Dirty dining #

01 September 2001

Sir John Krebs, head of the Food Standards Agency, has ordered detailed analysis of last year’s findings of environmental health officers’ inspections of restaurants and other food outlets. Of 235,969 inspected almost 120,000 were found..

Law Society issues green warning card #

01 September 2001

The Law Society has sent a ‘green warning card’ to all solicitors, reminding them that in ‘every transaction [they] must consider whether contamination is an issue.’ This is not only in relation to household mortgages but..

Pesticide safety report #

01 September 2001

The annual report of the Pesticides Safety Directorate claims all but one of its targets were met, and exceeded for completion of pesticide approvals. Responsible for the registration of agricultural pesticides on behalf of DEFRA and..

Integrated environmental protection in 1999 #

01 September 2001

A research report Environmental Protection Expenditure by Industry, 1999 , now published by DEFRA, shows an increase in company spending on integrating environmental protection rather than waiting to clean up at the end of a process. In..

New Camelford inquiry #

01 September 2001

Some 13 years after chemicals were accidentally dumped into the water supply of the Cornish town of Camelford, environment minister Michael Meacher has ordered a further (but not public, as the cause is already known..

ICI purchases homes #

01 September 2001

ICI’s offer to purchase their homes has been accepted by more than 200 families in Weston, Cheshire. Others will benefit by a 20-year guarantee of property prices. The homes are located near ICI’s Runcorn works..

Byker ash on allotments #

01 September 2001

Newcastle City Council has pleaded guilty to two charges of knowingly using toxic ash from the Byker incinerator for making paths on allotments between 1995 and 1998. The incinerator operator, Contract Heat & Power of Sawtry..

Multisource PCBs in foods #

01 September 2001

Research on behalf of the Belgian government, following the inclusion of 50kg of old transformer oil containing polychlorinated biphenyls (PCBs) to 500 tonnes of animal feed in 1999, has brought disturbing factors to light. Up to..

Punitive myths #

01 September 2001

An examination of punitive awards carried out by Cornell University professors Theodore Eisenberg and Martin Wells and analysts from the National Centre for State Courts finds that – contrary to popular belief – judges make..

DuPont to pay nurseries #

01 September 2001

A Miami-Dade County Circuit Court jury has awarded two Costa Rican plant nurseries US$29.5mn in respect of damage caused by their use of Benlate DF (a fungicide no longer on the market). But DuPont will have..

Automatic tyre pressure warnings #

01 September 2001

The National Highways & Transportation Safety Authority (NHTSA) is to require that vehicles made after November 2003 incorporate automatic tyre pressure warnings. Two systems are under consideration in conjunction with auto-makers. ..

First Firestone case in court #

01 September 2001

More than 150 compensation claims, arising from 203 deaths and many more injuries to which Firestone tyres have been linked by the National Highways Transportation Safety Association (NHTSA) implicated, settled, the first case gets court..

Artwork coated with asbestos #

01 September 2001

Discovery that a massive 120-foot-long Raoul Dufy painting celebrating electricity is coated with asbestos has led to closure of a gallery in the Museum of Modern Art in Paris. It is believed to have been..

Halliburton reveals asbestos liabilities #

01 September 2001

10-Q filing with the Securities & Exchange Commission led to a 4.5% stock fall for Halliburton, the world’s largest oilfield services firm. This through the greater detail provided of asbestos-related claims dating back to the..

Rescue package for Chester Street’s liabilities #

01 September 2001

The Association of British Insurers has now set in place the insurance industry financed £5mn rescue package. It is designed to cover 90% of the value of those pre-1972 asbestos injuries, unpaid as a result..

‘Not crippling’ #

01 September 2001

Rating agency Standard & Poor’s (S&P) sees the development of asbestos claims as significant, but not crippling, for the insurance industry. Differing from Tillinghast-Towers Perrin’s expectation that 60% of final costs of US$200bn will be..

Tobacco update #

01 September 2001

US$3bn punitive damages jury award reduced to US$100mn by Los Angeles trial judge Charles McCoy. Philip Morris had sought that the verdict, based on deception of customers regarding the risks of smoking, be set aside..

BSE, CJD and rural risks #

01 September 2001

Ten government-sponsored inquiries – none of them a ‘public inquiry’ – are now running on aspects of foot-and-mouth (F&M) disease. Among matters considered will be: how the disease entered Britain and the effectiveness of response;..

CCA a risk? #

01 September 2001

An article in Time (16 July 2001) discusses the use of chromate copper arsenate (CCA) infused into 98% of wood destined for outdoor use, including children’s playgrounds, in the US. Although there is no hard..

Veterinary residues #

01 September 2001

The annual report of the Veterinary Medicines Directorate showed less than 0.5% of all meat, fish, eggs and dairy products tested last year showed any detectable residue of veterinary medicines. The tests, carried through for the..

Aflatoxin in peanut butter #

01 September 2001

Besides the well known allergy risks, it appears some peanut butters may contain ‘unacceptable’ levels of aflatoxin, a natural contaminant linked to liver cancer. This was identified in tests carried out for the consumer magazine Which? ,..

Plastic wrapping contaminates foods #

01 September 2001

Following up suspicions voiced some years ago of food contamination from plastic wrappers, research carried out by the independent Steins Laboratory has been published in Denmark’s leading business magazine, Borsens Nyhedsmagasin . Also reported in the Financial..

Radionuclides #

01 September 2001

The government has asked the Committee on Medical Aspects of Radiation in the Environment (COMARE), an independent advisory body, to establish a broad-based working group to review the risks associated with internal radiation emitters (radionuclides)..

Gulf mediation refused #

01 September 2001

A request on behalf of more than 700 Gulf War veterans that their claims be investigated by an independent mediator have been rejected in that the Ministry of Defence does not accept legal liability for..

More MMR evidence #

01 September 2001

A study published in the 27 June 2001 issue of the American Medical Association journal gives some support to theories that the triple measles, mumps and rubella vaccine (MMR) has an association with childhood autism. Of..

Doctors still working overlong hours #

01 September 2001

The British Medical Association warns that, despite new rules in force from 31 July 2001, more than half of newly qualified and junior doctors will still be required to work for more than 56 hours..

Medical Defence Union report #

01 September 2001

The annual report of the Medical Defence Union (MDU) calls for change to the 1948 Law Reform Act. Under this act severely damaged patients who receive compensation must be given private medical care. The MDU..

Skiing accident damages #

01 September 2001

A skiing accident led to the quadriplegia of a trainee teacher, and pointed to the negligence of the employer and the field operator. The award was reduced by 20% for contributory negligence as he had..

Agency contributed to sexual harassment #

01 September 2001

An employment agency, continuing to refer staff to a firm having received several complaints about sexual harassment, contributed to the harassment suffered by a person placed in work. It was ordered to contribute A$5,000 to..

Nondelegable duty of care #

01 September 2001

A school’s duty of care to pupils could not be avoided by claiming it had been delegated to a teacher (in the case at issue having physically and sexually abused students). Leport v State of New..

Railtrack ordered to pay #

01 September 2001

Railtrack was found liable for failure to prevent pigeon mess under a bridge. As owner of the bridge, with knowledge of and means to prevent nuisance caused by feral pigeons to road users underneath, Railtrack..

Pure funders’ liability for costs #

01 September 2001

While there was no rule exempting one who funded the action of a party (as an act of charity) from an order for costs, it would rarely be just and reasonable to do so.This is..

Extended time for serving particulars #

01 September 2001

Where a claim form is served within the prescribed time, a court has discretion to grant an extension of time for the service of particulars. Totty v Snowden; Hewitt v Wirral and West Cheshire Community NHS..

Windfalls not caused by misselling #

01 September 2001

Where compensation is due for loss sustained due to the misselling of a pension, any windfall cash received (due to demutualisation of the insurer in the case at issue) should not be set against that..

Liquidator’s power to seek ban on director #

01 September 2001

The official receiver was not entitled to obtain documents from former solicitors and accountants of a liquidated company for use as evidence in proceedings under the Company Directors Disqualification Act 1986. In re Pantmaenog Timber Co..

Shareholder’s recovery of loss #

01 September 2001

A shareholder cannot individually recover damages for loss from breach of duty, which is merely a reflection of a loss suffered by the company as a whole, even where it was clear the company was..

Personal liability of professionals #

01 September 2001

In refusing leave to appeal the decision of the Court of Appeal, the Lords have confirmed personal liability for advice given by a wide range of professionals, in special circumstances. See Professional perils • Merrett v..

‘Witnessing’ event #

01 September 2001

The claimant heard screams, and sirens, over a mobile phone call from his wife when their daughter was killed by a speeding car. His claim for stress caused by ‘witnessing’ the event over the phone..

Reliance on ‘whistleblower’ rights #

01 September 2001

In order to rely on these provisions in the Employment Rights Act of 1996, it was not necessary that all relevant facts occurred after its provisions came into force on 2 July 1999. In the case..

Harassment by newspaper articles #

01 September 2001

Unsurprising in any context, the Court of Appeal, in this case, held that the publication of articles calculated to incite racial hatred of an individual was capable of amounting to harassment under the Protection from..

No duty to prevent escape #

01 September 2001

In a majority decision, the Court of Appeal held that the police had no duty to a potential prisoner to prevent him from escaping and therefore no liability for his injuries in so doing. In..

Holiday organiser’s liability #

01 September 2001

Strict liability for injuries suffered by a holidaymaker only applies where there was an improper performance of the contract, a decision that dismissed an appeal, citing the Package Travel, Package Holidays and Package Tours Regulations..

Extent of duty to other sporting contestants #

01 September 2001

Upholding the High Court decision against a claim for damages arising from injuries sustained from other jockeys during a race, the Court of Appeal has clarified the extent of duty of care between contestants. Confirming the..

Who pays the lawyers? #

01 September 2001

Giant law firms Davies Arnold Cooper and Davies Lavery and Berrymans Lace Mawer are owed around £2mn for legal work carried out for Independent Insurance. The law firms claim the commercial policyholders, on whose behalf..

Deafness claims #

01 September 2001

A claim alleging deafness due to work in a power station has been lodged in Dublin’s High Court. It is likely to be the first of many against the State Electricity Supply Board. Army deafness compensation..

CICA refuses road rage victim #

01 September 2001

The Criminal Injuries Compensation Authority (CICA) has refused to pay compensation to the victim of a road rage incident. After her attacker had driven aggressively and then backed into her vehicle, Ann MacDonald stood in..

Paddington payments under way #

01 September 2001

St Paul Insurance has started payments to relatives of victims of the Paddington train crash. The total on offer is around £20mn. Payments in respect of the 31 dead range from £750,000 to the wife..

Prison officers’ dilemma #

01 September 2001

The Court of Appeal has ruled that while the prison service was entitled to have a policy allowing the removal of babies at 18 months, it was not entitled to operate it rigidly where the..

Bradford police claim for riot injuries #

01 September 2001

Some of the police officers injured in the Bradford race riots are planning legal action to obtain compensation from their police authority for their injuries. More than 260 officers were hurt and 46 were still..

Civil action against bombers #

01 September 2001

An innovative civil action against five men suspected of involvement in the Omagh bombing by the Real IRA in 1998 has been launched in the Belfast High Court by families of the victims. There were..

C&E not involved in ‘sting’ #

01 September 2001

The High Court has dismissed a £1mn damages claim by businessman Ali Daghir, who was wrongfully jailed in 1991 for exporting nuclear triggers to Iraq. High Court judge Mr Justice Gray said Mr Daghir had failed..

Directors file action against FSA #

01 September 2001

Three directors of collapsed retirement advice firm Knight Williams & Co have lodged claims in the High Court against the Financial Services Authority (FSA) as successor to the Securities & Investment Board (SIB). They seek..

Equitable Life groups target treasury #

01 September 2001

The four Equitable Life action groups have joined forces to seek £2.6bn from the Treasury to ‘redress the failures of successive regulators’. Publication of the internal inquiry into the Financial Services Authority’s (FSA) handling of..

Court of Appeal fails to set precedent for future cases #

01 September 2001

The Court of Appeal failed to set guidelines for other cases when it ruled that the £350 premium in the whiplash claim of Callery v Gray (alias the Insurance Industry v Claims Direct ) was reasonable..

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