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

Terror cover #

01 May 2002

Six leading European insurers and reinsurers are forming a new venture, Special Risk & Reinsurance (Luxembourg), to provide cover against terrorism. Supported by Zurich Financial Services, Allianz, Hannover Re, Swiss Re, XL Capital, and SCOR, it..

Cox retrenches #

01 May 2002

Lloyd’s insurer Cox Holdings is to buck the trend of many companies expanding capacity to take advantage of the post-11 September premium surge, and close its commercial insurance operations. Liabilities, which include an estimated £125mn World..

First yearly accounting figures from Lloyd’s #

01 May 2002

Lloyd’s market has reported a loss of £3.1bn for 2001 mainly through exposure of £1.98bn for World Trade Center claims. But Moody’s believes the eventual loss will be worse, with World Trade Center claims up..

Part-time pensions payouts #

01 May 2002

In the first big settlement since last year’s ruling in the House of Lords implementing a decision of the European Court of Justice, HSBC is equalising payments to part-time workers to make their benefits equivalent..

Andersen/Enron #

01 May 2002

Andersen is to face charges of obstruction of justice on 6 May following the surprise breakdown of settlement talks with the US Justice Department. Although Andersen was prepared to admit wrongdoing in exchange for probation,..

Pirelli tower strike #

01 May 2002

The Swiss Air Commander 112TC aircraft that struck the Pirelli tower in Milan after the pilot had reported mechanical problems, caused five deaths (the pilot, two workers and two passersby on the street) and many..

Pilot skill and error #

01 May 2002

Both of these feature in the initial comment on the crash of an Air China Boeing 767, flight CA 129, into a mountainside on approach to Kimhae airport in South Korea. Although 122 passengers and crew..

Wavelength challenges TT Club #

01 May 2002

Wavelength, a new Lloyd’s-backed facility, is challenging established Through Transport Club (TT Club) on best value liability cover for port authorities and terminals. But both are steering away from br ing ing pricing into the..

11 September #

01 May 2002

Final rules for federal compensation fund have been announced by chief administrator Kenneth Feinberg. The average payment will now be US$1.85mn, about US$200,000 more than originally envisaged. The rules include provisions for the deduction of..

Slavery claim filed #

01 May 2002

An action seeking unspecified reparation from companies that profited from slave labour has been filed in US District Court, New York. Named defendants are Aetna, CSX and FleetBoston Financial with the right reserved to add..

Whistleblower wins US$78mn #

01 May 2002

In a business misconduct case settled by TAP Pharmaceuticals for US$875mn, a qui tam suit on behalf of Douglas Durand, who originally drew attention to the misconduct, has led to agreement for him to receive..

‘Insurers fail to stop asbestosis appeal to Lords’ #

01 May 2002

Despite press and radio apologia from the insurance industry, Lloyd’s List has stated the fact ‘Insurers fail to stop asbestosis appeal to Lords’ in a headline. As a result of last-minute settlement offers, and incorrect information..

Dura mater settlement #

01 May 2002

The Japanese health ministry and two companies – German supplier B Braun Melsungen and the Japanese importer – have reached formal settlement with plaintiffs who sued in the Tokyo and Otsu district courts for their..

References #

01 May 2002

After the end of employment of a financial consultant, his former employer sought repayment of £7,500 advance commission. He disputed the sum and counterclaimed damages for negligent misstatement (false assertion that he owed money) in..

Awards and settlements #

01 May 2002

Sick golf player unfairly dismissed and awarded £18,815. He was sacked when spotted playing golf while on sick leave for tonsillitis and vertigo, despite having no previous record of absenteeism and his explanation that he..

Global class action #

01 May 2002

US law firm Pendley Law Firm in Louisiana, having filed class action suit against GlaxoSmithKline alleging side-effects of antidepressant drug Paxil (Seroxat in the UK), is seeking links with law firms in Europe and Australia..

Bar complaints report #

01 May 2002

Recording 462 complaints against barristers in 2001, Michael Scott, the Bar complaints commissioner, reports several compensation awards of up to £5,000 for losses from shoddy work by barristers. But his report looks towards a sharp increase..

Group action #

01 May 2002

A useful article appeared in the Law Society Gazette of 28 February 2002 focusing on the development and increased significance of group action claims with particular reference to that of South African miners against Cape. Starting..

CFAs for PI defendants #

01 May 2002

Niche professional indemnity firm WHCG (Williams Holden Cooklin Gibbons) has split from recently formed Plexus Law to offer conditional fee agreements to defendants in professional indemnity cases. ..

CFA settlement #

01 May 2002

In one of the first successful uses of conditional fee agreements (CFAs) for defendants, London law firm David Price Solicitors & Advocates settled a claim and costs out of court. The case hinged on criticism..

Solicitors consult on fixed costs for PI claims #

01 May 2002

As the Civil Justice Council continues its deliberations, through the recoverable costs working group set up in December and due to report by year-end, solicitors from both sides of the court are exploring fixed costs..

Insurance mediation directive #

01 May 2002

Unanimous agreement by the Council of Ministers of the EU to a proposed directive on insurance mediation is expected to lead to final approval before the end of the summer. The aim is to make..

Insurance for Chinese travel agencies #

01 May 2002

From 1 September of this year the China National Tourism Administration will require all travel agencies operating in China to purchase travel agency liability insurance. This will provide tourists, both nationals and foreigners, with protection..

Product liability in South Korea #

01 May 2002

The requirements of product liability law in South Korea, in July of this year, is expected to boost the nonlife insurance market from W100bn (US$75mn) to several billion won a year. Currently the product liability insurance..

Recovery of premium guarantee #

01 May 2002

A new product from Greystoke Legal Services, Conditional Fee Assist, comes with a premium recovery guarantee (of up to £500 per policy) along with indemnity should the defendant become insolvent. Along with this, Greystoke is changing..

SVB suffers from US D&O #

01 May 2002

Despite a 42% rise in written premiums in 2001, speciality lines insurance group SVB produced an after-tax loss of £88.3mn. SVB’s syndicate 1212, suffering from World Trade Center and other property losses, also performed badly..

Investor protection policies? #

01 May 2002

An article in the New York Times of 8 March 2002 suggests insurers should provide corporations with policies to protect investors against losses from misrepresentations in financial statements. Accountancy professor Ronen claims this would be easier..

Nonexecutives misunderstand D&O #

01 May 2002

Hanson Green’s guide to boardroom insurance says there is widespread misunderstanding of directors’ and officers’ (D&O) insurance among nonexecutive directors. For example, they do not realise many company policies do not cover nonexecutives. Hanson Green..

Driver’s action supersedes owner’s negligence #

01 May 2002

The Mississippi Supreme Court has ruled that the negligence of the driver of a stolen vehicle in driving through a red light and killing another driver supersedes that of the owner of the car in..

Spanish brokers seek Independent payment #

01 May 2002

A group of Spanish insurance brokers has instructed London-based lawyer Inka Piegsa-Quischotte to seek compensation from the Financial Services Compensation Scheme. Claiming around £2.3mn for almost 400 clients with unpaid claims, they seek inclusion in..

Stakeholder delay #

01 May 2002

The ABI has estimated that one in 10 businesses employing five or more people – a total of 20,000 – face fines of up to £50,000 for failing to get stakeholder pension schemes in place..

Pension missale compensation backlog #

01 May 2002

About 7,000 people are reported as still waiting for settlement of pension missales, according to the Financial Services Authority (FSA). Many of these have claims against firms no longer in existence. To date, about 421,000 people..

Standard Life to compensate customers #

01 May 2002

Standard Life is to compensate 6,000 mortgage customers so as to preempt an order by the financial ombudsman. At around £200 each, the matter arises from failure to offer existing customers new lower interest products. ..

Equitable Life to sue Ernst & Young #

01 May 2002

The new management of Equitable Life has filed suit in the High Court against Ernst & Young, seeking £2.6bn for negligence in past audits. They are not, ‘at this stage’, taking action against former legal advisers..

Porton Down inquest? #

01 May 2002

The Attorney General’s support for a new inquest on Ronald Maddison, who died when nerve agent sarin was dropped on his skin in tests in 1953, makes High Court approval likely. An inquest held in secret..

Broader compensation for injured soldiers #

01 May 2002

The Ministry of Defence is to announce wider compensation for soldiers ‘injured as a result of terrorism or warlike activities’. Previously, compensation in the form of a war pension of up to £10,000 a year required..

MoD appeals on pre-1987 injuries ruling #

01 May 2002

The Court of Appeal is to consider the Queen’s Bench ruling in Matthews v MoD (see LRI 140), referring to the Human Rights Act, allowing members of the armed forces to bring claims for injuries..

Privacy at work #

01 May 2002

A code of conduct drawn up by the Information Commission and due to become operative later this year sets limits on employer surveillance of workers’ use of emails and phones. Staff should have access to..

Employers and sexual harassment #

01 May 2002

Under a European directive due to come in force in 2005 employers accused of tolerating sexual harassment will have to prove they have created a ‘harassment-free’ workplace. The European Court of Justice will be the..

Mobile phone use when driving #

01 May 2002

A three-month study conducted by the Transport Research Laboratory on behalf of Direct Line has quantified the effects of mobile phone use on driving standards. The participants used driving simulators under a number of conditions, including..

Heathrow security in spotlight #

01 May 2002

The Department of Transport has called on the British Aerospace Authority, responsible for security at London Heathrow airport, to report on lapses of security. These have included two major robberies in just over a month,..

DVT research and developments #

01 May 2002

British Airways is asking 1,000 ‘frequent flyers’ to take part in a deep-vein thrombosis (DVT) research project run by Birmingham University’s medical school under Dr John Townsend. It will examine passenger awareness of risk and..

Appeal decision calls for wider seat space #

01 May 2002

In rejecting JMC’s appeal against Macclesfield County Court’s £500 award to Brian Horan (see LRI 140) for fear of deep-vein thrombosis (DVT) when he was denied legroom ‘to a reasonable standard’ on a flight from..

Airbus tail movement cleared in tests #

01 May 2002

Voluntary tests by American Airlines of an Airbus A300-600 have found no problem with the side-to-side tail movement as experience in their flight 857 that crashed in New York last year when a tail section..

NTSB blames copilot for EgyptAir crash #

01 May 2002

The National Transportation Safety Board (NTSB) inquiry has concluded that the 217-death crash of EgyptAir flight 990 Boeing 767 off Nantucket in 1999 was deliberately caused by the copilot, Gamil al-Batouti. There were no speculations as..

EC calls for compulsory ferry insurance #

01 May 2002

The European Commission (EC) has called for EU legislation requiring passenger ferry companies to take out compulsory insurance for no-fault liability claims from passengers. This is for €250,000 per passenger, although the EC statement calls for..

EC environmental liability consultation #

01 May 2002

The Department of the Environment, Food & Rural Affairs has launched a public consultation on the European Commission’s (EC) proposals for an EU Directive on Environmental Liability. The main proposals aim to establish a liability regime..

Pill effects neuter male fish #

01 May 2002

Up to half of male fish in contaminated rivers are unable to produce sperm, according to the Environment Agency. This is in particular from the ‘female hormone’ effects of chemicals leaching into the water from..

Uranium pollution confirmed #

01 May 2002

A new report by the United Nations Environment Programme (UNEP) confirms low-level pollution by uranium in Serbia and Montenegro. This is broadly consistent with earlier UNEP and Royal Society research. Continued monitoring is recommended, particularly..

Oil industry research shows harmful pollution #

01 May 2002

At a conference of North Sea environment ministers, Dr Ole Arve Misund, director of the Institute of Marine Research in Bergen, highlighted the effects of polluted water on fish supplies. Citing research sponsored by the Norwegian..

Boston drops gun suit #

01 May 2002

The city of Boston has decided to drop its suit, seeking to hold the gun industry liable for the costs of gun violence, as too expensive. Due to go to court in September, it was..

Monsanto cleanup settlement #

01 May 2002

The Environmental Protection Agency (EPA) has accepted Monsanto’s settlement offer for PCB (polychlorinated biphenyl) contamination of a site at Anniston, Alabama. The deal, which was struck following an Alabama jury finding of liability, has been under..

NAIC to have role in class actions? #

01 May 2002

Insurance groups are pressing the US National Association of Insurance Commissioners (NAIC) to establish a mechanism whereby NAIC could file an amicus, or ‘friend of the court’, brief in class actions involving insurance. Insurers claim the..

Tighter exposure limits sought #

01 May 2002

The European Parliament is seeking significantly lower workplace asbestos-exposure limits than recently proposed by the European Commission. The parliament believes exposure at 0.1 fibres per cubic centimetre for an eight-hour period in high-risk sectors is too..

Widening of ‘inexcusable’ conduct #

01 May 2002

Rejections of employers’ appeals against ‘inexcusable conduct’ in exposing workers to asbestos in rulings by the Cour de Cassation in Paris have significantly impacted on the French system of calculating asbestos damages. Under article 40 of..

Asbestos a rating factor #

01 May 2002

Insurers’ asbestos liabilities and reserves have become a factor in credit rating, according to rating agency Moody’s Investors Service. Noting that several insurers took charges during 2001 to strengthen asbestos loss reserves, it said many..

ABI passes £1mn Chester Street payout #

01 May 2002

Although the ABI-overseen scheme to compensate asbestos victims left high and dry by the collapse of Chester Street has passed the £1mn mark in payouts to 159 claimants or their relatives, there are still critics..

California ruling to speed payments? #

01 May 2002

A ruling of the Californian state court may force insurers to speed asbestos payments. Previous estimates by analysts envisaged the eventual total of US$50bn being paid over 40 or more years, but the ruling in a..

‘Fear’ award for review #

01 May 2002

The Supreme Court is to review a West Virginia jury award of US$5.8mn among six workers who claimed emotional distress over their exposure to the cancer-causing material. The appeal in Norfolk & Western v Ayers et..

Childhood exposure #

01 May 2002

A Kanawha County jury in West Virginia has ordered DuPont to pay US$6.4mn to the family of a man who died as a result of childhood exposure to asbestos fibres on his father’s workclothes. Leonard Dale..

US$33.7mn to navy electrician #

01 May 2002

A San Francisco jury has awarded former navy electrician Alfred Todak US$33.7mn for mesothelioma contracted while working on ship boilers at Lockheed Shipbuilding & Construction Co in the 1960s and 70s. In Todak v Asbestos Defendants ..

Tobacco update #

01 May 2002

British American Tobacco’s (BAT) defence has been struck down in Australian court because of destruction of documents. In the Supreme Court of Victoria Mr Justice Geoffrey Eames said: ‘The process of discovery in this case..

BSE, vCJD and OPs #

01 May 2002

Cost of outbreak of BSE in Japan estimated at over US$2.76bn. This is through a slump in farm revenues, a fall in meat sales and restaurant takings. And this is on three positive tests in..

Liability for security glitches? #

01 May 2002

An article in Business Week of 18 March 2002 follows up recommendation of the National Academy of Science that US legislators remove software companies’ protection from product liability suits. The article argues that the best way..

Ford and Firestone both lose #

01 May 2002

The US District Court in Indianapolis has rejected moves by both Ford and Firestone for dismissal of more than 100 rollover suits arising from accidents in Venezuela and Colombia. Judge Barker ruled that US courts..

Second Firestone court hearing #

01 May 2002

Having reached settlements with many tyre-failure, rollover claimants, Firestone faces its second jury hearing. The case seeks US$70mn in respect of critical injury to a college student and lesser injury to two others in a..

Better labelling of meat #

01 May 2002

The chairman of the Food Standards Agency has called for better labelling of food containing mechanically recovered meat. This is through a voluntary code in advance of next year’s European Commission rules. Mechanically recovered meat is..

Fruit contamination warnings unnecessary #

01 May 2002

The Food Standards Agency has withdrawn advice, issued by the Ministry of Agriculture (MAFF) in 1997, on the advisability of washing and peeling fruit and vegetables to remove pesticide residues. The Food Standards Agency said new..

Dietary supplements as cause of death? #

01 May 2002

Northwestern University, Illinois has filed suit against Cytodyne Technologies and other manufacturers of dietary supplements in respect of the death of football player Rashidi Wheeler. It claims the supplements were the most likely cause of irregular..

Insecticides withdrawn #

01 May 2002

Nearly 50 brands of insect killers have been withdrawn from UK shops following advice by the Advisory Committee on Pesticides that it was not possible to rule out cancer risks from the chemical dichlorvos (DDVP). DDVP..

‘Hot coffee’ action against McDonald’s cleared #

01 May 2002

Differing in many ways from the classic 1994 (US) case of Liebeck v McDonald’s , the first class action of its kind in the UK has set common-sense levels of responsibility in dealing with hot drinks. Since..

Nominal damages for prolonging life #

01 May 2002

The judgment of Dame Elizabeth Butler-Sloss, president of the High Court Family Division, has reaffirmed the right of mentally competent patients to refuse treatment. It also allows the claimant, ‘Miss B’, the right to insist her..

Cervical cancer risk #

01 May 2002

Large-scale multinational research has linked the contraceptive pill to increased risk of cervical cancer in women. Carried out by the International Agency for Research on Cancer, it appears in The Lancet of 30 March 2002...

Mercury risk in vaccines #

01 May 2002

An article in the National Law Journal of 18 March 2002 reports a growing area of litigation in the US alleging that mercury (thimerosal) used as a preservative in vaccines is linked to the development..

Sulzer Medica reports loss #

01 May 2002

Continuing litigation over faulty hip and knee joints has forced Sulzer Medica into a US$724mn loss for 2001. Arguments still run on the exact details of the current US$725mn settlement offer, which, with preliminary approval..

Birth defects and lack of epilepsy drug advice #

01 May 2002

A survey by the British Epilepsy Association suggests more than 60% of women are taking older epilepsy drugs and that less than half of these recalled are warned of an increased risk of birth defects..

Professionals’ duty in child abuse #

01 May 2002

The Canadian government has taken a tough line on professionals who fail to act on clear signs of child abuse. This comes in the case of a girl now aged five, brain-damaged by being shaken..

Australian government aids AMIL #

01 May 2002

The Australian government has given doctors’ mutual Australasian Medical Insurance (AMIL) a financial guarantee of A$35mn to allow it to meet regulator requirements on capital reserves. But AMIL, which covers 60% of doctors in Australia,..

Clinical negligence claims against NHS #

01 May 2002

The National Audit Office reports that ‘likely liabilities’ clinical negligence claims against National Health Service (NHS) entities stood at £4.4bn at the end of March 2001, an increase of £500mn over the previous year. A further..

Avoidance of policy for alleged dishonesty #

01 May 2002

Although a shipowner commenced ‘hot work’ in a shipyard two weeks before the date of salvage association certificates, the insurer was not entitled to avoid the contract where the fraud was material to the underwriters’..

Additional damages not punitive #

01 May 2002

In awarding additional damages under section 97(2) of the Copyright, Design and Patents Act 1988, it was not appropriate to include a purely punitive or exemplary element. But the section was drafted in wide terms..

Recovery of costs of expert services #

01 May 2002

The costs of expert services provided by a party’s own employees are, if reasonable, recoverable. Admiral Management Services Ltd v Para-Protect Europe Ltd • Chancery Division • Law Society Gazette • 18 April 2002 ..

Damages entitlement for unpaid carer services #

01 May 2002

A claimant, injured in an accident where liability was not an issue, was unable to continue giving a full 77 hours a week of care to his disabled brother. His claim for damages for loss of..

Use of land for disposal of carcasses #

01 May 2002

The secretary of state for the environment was not under any duty to pay farmers for the use of their land to burn the carcasses of their own animals slaughtered when infected with foot-and-mouth disease...

Control of vehicle (used in illegal dumping) #

01 May 2002

Where there was evidence of ownership of a vehicle found to be illegally dumping waste, the court could properly infer that the owner – even though not driving at the time – was in a..

Occupational stress #

01 May 2002

A senior divisional administrative officer suffered stress and anxiety (work and home related) and reported this to his GP in 1994. On his return to work a few months later he specifically required that any..

Disclosure of sensitive personal information #

01 May 2002

In awarding (fairly minimal) damages of £3,500 to a ‘supermodel’ who complained of newspaper publication of a photograph of her attending a Narcotics Anonymous meeting, the court has done little to clarify the privacy rights..

Contributory negligence #

01 May 2002

An employee who fell down stairs in the dark was held to 60% contributory negligence. This was upheld on appeal. The radio operator and occasional courier returned to the office with the sole intention of chatting..

Disparity of pension benefits #

01 May 2002

Differential of pension benefits available to male or female nurses when retiring at age 55 (benefiting female nurses) was not discriminatory. This was in relation to the temporal limitation embodied in protocol 2 concerning article..

Labour-only subcontractors #

01 May 2002

Labour-only subcontractors in the building industry are ‘workers’ under the protection of the Working Time Regulations 1998. Such individuals had undertaken to personally perform services, even though the contract allowed that the services could be..

Terms of employment #

01 May 2002

An obligation prohibiting financial advisers from holding a material interest in a potentially competing company applied to the formation of such a company, even though it remained dormant until such time as the financial advisers..

Trusts for the disabled #

01 May 2002

Caroline Mackenzie, an associate in the Private Client Department at Taylor Joynson Garrett, has provided this note on an innovative approach to damages for a young person with full mental capacity. A recent case (heard in..

German soldiers to sue radar manufacturers #

01 May 2002

Berlin-based law firm Reiner Geulen is preparing a claim on behalf of more than 700 soldiers or their families alleging they developed various forms of cancer from working with radar systems for 20 years until..

Barings auditor for court hearing #

01 May 2002

The ruling by Mr Justice Evans-Lombe that Deloitte Touche Tohmatsu, former auditor of Barings in Singapore, has a case to answer confirms the commencement in May of a major High Court hearing to determine a..

Rural businesses to sue DEFRA #

01 May 2002

Around 2,500 rural businesses that were affected by the foot-and-mouth epidemic, but not eligible for compensation, plan to sue the Department for Environment, Food & Rural Affairs, seeking £1bn in compensation for their losses. ..

Teachers urged to prosecute #

01 May 2002

Teachers at the conference of the Association of Teachers & Lecturers have been urged to bring private prosecutions against violent children and their parents. This is because of the weak response of the Crown Prosecution..

Civil proceedings follow failed criminal action #

01 May 2002

In a developing trend, civil proceedings have been launched against Leeds United footballer Lee Bowyer, found not guilty of causing grievous bodily harm in the criminal court. The action is brought by brothers Sarfraz and Shahzad..

Dancer seeks £13mn #

01 May 2002

Dancer Kerston Parkin, brain damaged, paralysed and needing constant care as a result of medical blunders when she was giving birth to a baby in 1996, is claiming £13mn damages. Farnbrough Hospital has admitted liability..

Race attack victim to sue police #

01 May 2002

Duwayne Brooks, a survivor of the lethal racist attack on Stephen Lawrence in London, has been given permission by the Court of Appeal to bring action against the Metropolitan Police for its treatment of him,..

Riot Act ‘not obscure’ #

01 May 2002

The Riot Act is not obscure, according to David Pye, active underwriter at D J Pye syndicate 692, commenting on the £97mn claim against Bedfordshire Police Authority in relation to damage to the Yarl’s Wood..

‘As useful as a chocolate fireguard’ – Anglia Water case winner criticises EA #

01 May 2002

In an interview in the Basildon Yellow Advertiser of 20 March 2002 following his £200,000 win against Anglia Water, Roy Hart characterised the usefulness of the Environment Agency – which was still considering whether to..

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