i-law

Liability Risk and Insurance

Ecuadorian cover based in London

US$300mn liability cover for Ecuadorian airline TAME’s Boeing 727-100, which crashed into the side of a volcano on the Ecuadorian/Colombian border in foggy conditions late in January, was led by London-based Global Aerospace Underwriting..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

US airlines look to form captive

The Air Transport Association is working with Marsh & McLennan to provide airlines with a vehicle giving the mandatory US$1.5bn in third-party war liability coverage. The captive, provisionally named Equitine, will be jointly owned by the..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

China gets first D&O policy

Ping An Insurance of China, together with Chubb Insurance, has introduced China’s first directors’ and officers’ (D&O) liability insurance cover. A good level of takeup is expected as China’s securities market regulator..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Lloyd’s makes another cash call

Lloyd’s has announced it is to make a second cash call to cope with claims from the 11 September attacks and US regulator demands for 100% deposits. A 60% deposit of US$2bn was made in November, with the remaining 40% due in March. At..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

A M Best reaffirms Iron Trades’ A- rating

A M Best has affirmed the A- (excellent) financial strength rating of Iron Trades Insurance (ITIC) and removed the ‘under review’ status applied to reflect concerns on the QBE Group’s potential loss exposure from the World Trade..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Scottish Widows to pay GAR holders

Reversing its previous stance in the light of the House of Lords ruling on Equitable Life, Scottish Widows (acquired by Lloyd’s TSB in 1999) will pay £1.4bn compensation to 200,000 guaranteed annuity rate (GAR) pension policyholders from..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Judge calls for action on hatch covers

In a major interview for Lloyd’s List (4 February 2002) Mr Justice Colman has highlighted the continued danger from substandard hatch covers. Despite the long-fought-for evidence from the loss of the Derbyshire (Colman J’s report and..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Officer wins compensation for pirate attack

A brief report in Lloyd’s List notes a £40,000 award for posttraumatic stress to a female officer on the Shell vessel Isomeria who was wounded when used as a human shield by attacking pirates. She has recovered from the wounds (probably..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Contractors contribute to Piper compensation

The House of Lords has confirmed a Scottish court ruling that a contractor that employed some of the victims of the Piper Alpha disaster in 1988 must contribute to the compensation paid out by platform operator Caledonia North Sea. The ruling in..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

‘Unlawful exclusion’?

Campaigning law firm Thompsons has called on Royal & SunAlliance to honour obligations arising from Royal Insurance’s cover of Turner & Newall from 1972 to 1977 and to compensate former workers in Clyde shipyards now suffering..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

House of cards?

After a few year’s of lull and stabilisation, the impact of asbestos is escalating into areas formerly considered immune, the impact either direct or at one remove. Bermuda-based Scandinavian Re has ceased new and renewal underwriting after..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Compensation under defendant’s national law

A ruling that the Dutch widow of a man, killed on a trawler owned by an English company, receive damages in full – rather than minus state and other benefits as under Dutch law – reaffirms that damages should be calculated under the..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Railtrack criticised for five-year delay in settlement

with 10 accident victims who eventually won £1.5mn in compensation. Mr Justice Mackay criticised the delay of Railtrack and the company responsible for carrying out safety audits in admitting liability for the death of one and the injury of 17..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Silverstein saga continues

Silverstein Properties has filed papers demanding Swiss Re post a US$700mn bond – its maximum involvement on a two-event basis – with US regulators. Insurers Ace and XL Capital have achieved settlement with Silverstein for their..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Enron fallout hits market

The collapse of Enron is having an impact on both the market and individuals, who may never even have heard of it as an entity. Just one example is the collapse of settlement negotiations between the victims of a 1996 explosion at a shoe store in..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Baxter tubing award upheld

The Illinois Supreme Court has upheld an US$18mn award made in 1998 by a lower court to the heirs of a woman who died when intravenous tubing came apart. It was held that the design was defective and that Baxter International should have warned..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Sulzer US settlement

Sulzer Medica has put forward a US$1bn settlement package for suits facing its US arm Sulzer Orthopaedics, relating to faulty hip and knee implants. Sulzer Medica will contribute US$725mn, with insurers and parent Sulzer paying the rest. Although..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Baycol action in English courts

Pharmaceutical litigation specialist law firm Hugh James Ford Simey has launched a class action on behalf of 22 British claimants. The firm is currently investigating almost 500 reports to the UK Medicines Controls Agency of alleged side-effects..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Question over sodium valproate

Twenty mothers have won legal aid to launch a negligence action against health authorities (others expected to join) over the effects on their unborn infants of sodium valproate (brand name Epilim), an anticonvulsant drug for those with..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Precaution or pride?

A strange standoff has developed in the UK on the provision of an alternative to MMR, the triple vaccine against the ailments of measles, mumps and rubella. The latest research – attributed by the media to Dr Andrew Wakefield, giving the..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Lockerbie bomb loaded at Heathrow?

New evidence presented at the appeal of Abdelbaset Ali Mohmed al-Megrahi, the man convicted for participation in the destruction of the aircraft, has suggested the bomb that destroyed Pan Am flight 103 over Lockerbie was loaded at Heathrow, rather..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Passenger fear ‘can cause DVT’

Deep vein thrombosis (DVT) can be caused by stress and fear of flying, according to some medical research, as fear causes constriction of veins. Other estimates suggest two-thirds of passengers are fearful of flying. The next step is identification..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

DVT group litigation proceeds

The High Court has cleared the way for group litigation on the preliminary issue of whether deep vein thrombosis (DVT) is an ‘accident’ under the Warsaw Convention, although it is unlikely to be heard for at least a year. Previous judges..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

‘Gross negligence’ in crash overturned

In 1994 a Chinook helicopter crashed off the Mull of Kintyre with the deaths of 29 crew and senior army personnel. Despite findings by the original RAF inquiry and the Air Accident Investigation Branch that it was not possible to determine the cause..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Kuwait loss recouped

..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Iranian TU-154 crashes into mountains

An Iran Air Tours TU-154 passenger aircraft with 117 passengers and crew crashed into mountains near Khorramabad on 12 February, shortly before it was due to land. All are presumed dead. Early reports suggested the plane was in good maintenance..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Birmingham jet was not deiced

The private jet that crashed last month at Birmingham airport with the deaths of two businessmen and three crew had not been deiced. Witnesses report seeing frost or ice on the wings but the pilots, although inspecting them, did not request..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Police make arrest for traffic in Airbus parts

Italian police have arrested six people for trafficking in defective Airbus spare parts, an operation of Italian company Panaviation. A number of aging Airbus A300s were found partly dismantled for the onward sale of thousands of parts to the US and..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Post-11 September 2001: brave new world?

16–17 May • London • The British Insurance Law Association will provide a forum for informed discussion and debate, led by principal legal and market figures on both sides of the Atlantic concerned with the immediate impact of 11..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Professional indemnity insurance: facing the past – analysing the future

10–12 April • Queens’ College, Cambridge • The usual interactive format of expert presentations, masterclasses and symposium (free for all) will look at the whole gamut of developments in this sphere •..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

China sees more openings

New regulations effective from 1 February 2002 allow foreign insurers to operate liability, property, credit, personal, life, health and accident insurance in China. Large-scale commercial risk coverage may be offered with special permission from..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

China courts to hear shareholder suits

The Supreme People’s Court of China has reversed its earlier ruling prohibiting lawsuits by investors seeking damages for losses related to fraudulent disclosures by companies. Two shareholder claims were suspended in September last year, with..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Guide to disability act

Remploy, employer of more than 11,000 disabled people, has compiled a guide to the Disability Discrimination Act. It includes warning that from 2004 all companies of whatever size will be included in its requirements banning discrimination against..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Suits go online

Claims of up to £100,000 may be filed on the internet and, if undefended, money can be recovered without any court appearance. Money Claim Online, launched late 2001, is at www.courtservice.gov.uk/mcol • Fee is £27 payable by credit..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

ADR for bulk PI claims

The City Disputes Panel is to administer the first case-by-case review scheme for bulk personal injury claims under a system of alternative dispute resolution (ADR). This will handle claims from past employees and local residents of the Capper Pass..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Disputed costs cases mount

With hundreds of thousands of disputed costs cases stacking up, including 70,000 involving Claims Direct, Lord Phillips said he is ‘far from content to leave it to the courts’ to resolve a situation he characterises as the..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Review of audit regulation

The Financial Services Authority (FSA) is giving priority to review of the regulation of audit practice in the UK. It was not only alerted by Enron but is responding to the problems of Independent Insurance, Equitable Life and others. A review..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Level of solicitors’ indemnity

..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Claims Direct buys Claimline

Claims Direct has, after some months of negotiations, purchased rescuer Simon Ware-Lane’s smaller operation Claimline for £1.54mn through a share issue. Providing operating economies and the benefit of Claimline’s good relations..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

RSA doubles asbestos claims reserves

Royal & Sun Alliance has more than doubled reserves for asbestos claims to US$538mn. Reserves have also been increased by £220mn in respect of other losses, including the World Trade Center and Enron. Operating profits for 2001 are..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Duty to provide security

..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

First insurer fails due to 11 September

Taisei Fire & Marine Insurance has filed for insolvency in the Tokyo District Court.The first major insurer to go under as a result of the attacks of 11 September, it is also the first nonlife insurer to file for protection under the special..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Indian ruling allows insurer challenge

A ruling of the Supreme Court of India, reported in Insurance Day of 5 February 2002, will allow insurers to challenge the size of awards by a motor accidents claim tribunal to third parties. This now applies even where the nominal defendant has..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Claim against road authority succeeds

A claim by Lisa Palmer, tetraplegic after her car left the road and rolled down an embankment, has led to an award of more than A$16mn. The claim was brought against the New South Wales Roads & Traffic Authority (RTA), Evans Shire Council and..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Irish premiums rise despite accident reduction

Motor insurance premiums in Ireland have increased by an average of 25% despite a fall in the number of accidents. Responding to criticism from consumers and government, the Irish Insurance Federation said claims costs are still increasing. It also..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Mobile phone victim gets $20.9mn

..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Survey of UK motor market 2000

A survey of the UK motor market in 2000 appears in our sister journal London Market Newsletter issue 709, giving details of gross and net written premiums, reinsurance, underwriting result and so on for 81 companies and syndicates. Unfortunately..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Study highlights importance of rear seatbelts

Analysis of 100,000 accidents by Dr Masao Ichikawa of Tokyo University, reported in The Lancet of 4 January 2002, has highlighted the importance of rear seatbelts. Unbelted rear-seat passengers present the biggest single threat to drivers and front..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

NHS charge increase withdrawn

Recent amendments to the Road Traffic (NHS Charges) Act, raising the amount an insurer could be required to pay when the victim of a road accident is admitted to hospital to £30,000, have been withdrawn. The Association of British Insurers had..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

New risk for house vendors

Undisclosed damages have been awarded in York County Court in Pemberton v King for lack of warning to the new purchaser of problems with noisy neighbours. It was agreed that in a presale document Mr and Mrs King had ticked the ‘no’ box..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Commercial contracts a pitfall for solicitors

Errors in commercial contracts are estimated as accounting for a quarter of all professional negligence claims against solicitors, according to a report in the Law Society Gazette of 14 February 2002. The experience of leading insurer for..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Equitable gets 97% vote and High Court OK

Equitable Life having won support for the rescue package from 97% of voting policyholders in both classes (though with less than 50% of eligible members actually voting), and the passing of the deadline for challenge to the Court of Appeal, most..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Small IFAs lag on misselling compensation

The Financial Services Authority (FSA) is to increase pressure on small Independent Financial Advisers (IFAs) to speed compensation for misselling of personal pensions. To date it has only dealt with 61% of cases, compared with 89% covered by larger..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Financial Services & Markets Act

A useful overview of the Financial Services & Markets Act, which came into force on 1 December 2001, appears in the winter 2001/2 issue of Barlow Lyde & Gilbert’s D&O Liability Review . Email the author, Francis Kean •..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Test for LLPs

Commentators have suggested suits against Arthur Andersen for its part in Enron’s activities, if exhausting insurance cover, could lead to the first test for limited liability partnerships. Some believe that any and all partners could be held..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

New legal duties on trustees

Following the Myners report on institutional investment, a government consultation paper has proposed new legal duties on the trustees of pension funds. This specifically addresses concerns that big companies do too little about poor performance,..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Human rights present risk to multinationals

According to research published by Amnesty International and the Prince of Wales International Business Leaders Forum in Business and Human Rights: a geography of corporate risk (see Financial Times , 13 February 2002) multinational companies are..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Duties and responsibilities of directors

CMS Cameron McKenna has produced a guide to the duties and responsibilities of the increasing number of directors appointed, often at short notice, as directors in nonhome jurisdictions on behalf of multinational groups. Downloaded from..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Professional perils

D&O cover a ‘warning’ A study by Prof Larry Dann of the University of Oregon, to be published at the end of April in the Journal of Finance , shows a strong link between the purchase of directors’ and officers’ cover..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Corporate killing alert

A note in the winter 2001/2 issue of Barlow Lyde & Gilbert’s D&O Liability Review reminds that, although issues of corporate killing seem to have been kicked into the long grass of UK legislation, UK firms may be exposed to charges..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Minimum wage rules help recover millions

Over recent months more than £2mn has been recovered from skin-flint employers that failed to observe the legal minimum wage payment to their employees. More than 5,000 workers have as a result received an average of £370 each. The..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

MoD immunity lifted

A decision on the Queen’s Bench Division that crown immunity was incompatible with the European Convention on Human Rights will allow a number of claims for death or injury to proceed against the armed forces. Aspects of crown immunity had..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Miners’ compensation grows

From the original cost estimate of £2bn when the government scheme to compensate miners suffering from respiratory disease and vibration white finger was set up in 1998, current estimates suggest a cost of £6.2mn by 2005. Of the 173,824..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Personal files must be made accessible

Under the final draft of the Information Commission’s code on employee records, employers must make personal records, including emails and handwritten notes, available to employees on payment of £10. This right applies to virtually all..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

SCOR issues harassment/discrimination report

SCOR has produced an excellent overview of harassment and discrimination – the major ‘new risks for employers’. It covers a range of aspects, mainly from a European perspective though with reference to the US experience...
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Stress claims rise dramatically

Figures from the Trades Union Congress show that work-related stress claims, with union backing, rose from 516 in 2000 to 6,428 last year. During the same period personal injury claims fell by 750 to 51,204, mostly arising from accidents at work...
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Stress claim criteria

Considering four appeals against awards for psychiatric injury caused by workplace stress, the Court of Appeal has laid down guidelines that essentially confirm criteria of foreseeability and comparison. (See Case update .) Employers have a duty to..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

HSE prosecutions 2000/1

The Offences and Penalties report of the Health & Safety Executive shows prosecution of 1,030 dutyholders for 2,077 offences, with a 72% conviction rate. For managers and directors of businesses the average fine was £834 (with a single..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Employers fail to fight asthma

Reporting to an HSE project, the Trades Union Congress has estimated there are 150,000 people suffering occupational asthma in UK, with up to a further 7,000 developing it each year as a result of work conditions. In a survey it found only 8% of..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

EU recognises penalties

The European Parliament has approved draft legislation that will allow mutual recognition of penalties levied for safety violations throughout the EU. Final approval by the European Council is expected.This will stop companies that are found guilty..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

White asbestos recognised as health hazard

White asbestos (chrysotile), formerly considered less dangerous than blue asbestos (crocidolite) and brown asbestos (amosite), has now been recognised on the basis of scientific evidence as a major health hazard. As a result the Health & Safety..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Erika cleanup claim fails

The Rennes Court of Appeal has rejected a move by the tiny village of Mesquer to obtain US$60,000 from TotalFinaElf for cleanup of oil on its beaches that leaked from the Erika in 1999. It was held that the 1975 legislation providing that waste is..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

EC seeks retesting of 30,000 chemicals

The European Commission is seeking to enforce retesting of 30,000 chemicals in use in everyday products where former tests took place more than 10 years ago. The Chemical Industries Association opposes the move – and is likely to be joined by..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

EU adopts environmental liability directive

The European Commission Directive on Environment Liability was adopted in January, though it is not yet fully implemented. A useful question-and-answer overview by Valerie Fogleman of Barlow Lyde & Gilbert appears in Insurance Day , 31 January..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Angler acts while Environment Agency havers

Keen angler Roy Hart has brought and won a case against Anglian Water for pollution of the River Crouch with sewage sludge. The Environment Agency is still considering whether to take action. Blamed on failure of a bolt, which was not spotted..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Sewage flood breaches human rights

The Court of Appeal has upheld a claim by Peter Marcic that repeated flooding of his home by sewage, under the control of Thames Water, was a breach of his human rights. Damages are yet to be assessed but the court suggested they may be determined..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Atmospheric asthma risk to children

Researchers at the University of Southern California have demonstrated that the sharp rise in childhood asthma (1.4mn affected in Britain) is linked to air pollution. This is from studies of thousands of children, assessing whether they habitually..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Landfill risk of birth defects

Research by Dr Martine Vrijheid of the London School of Hygiene & Tropical Medicine into 23 landfill sites across Europe shows chromosomal abnormality birth defects are 40% more likely to those living within 3km of such sites. An earlier study..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

AZF explosion likely to exceed TFE’s cover

The cost of last September’s explosion at TotalFinaElf ’s AZF chemicals plant at Toulouse is expected to exceed TotalFinaElf ’s liability cover of ­€850mn (US$760mn). Latest estimates of damage to third parties stands at..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Holocaust victims’ fund meets problems

Lawrence Eagleburger has resigned as chairman of the international commission dealing with Holocaust-related insurance claims. He claimed he lacked the authority to resolve disputes between insurers and survivors or families. He was reappointed..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Reliance hits rivals

After years of damage to other insurers by Reliance’s underpricing of workers’ compensation, business liability and motor insurance, insurers have been called on to make up its shortfall. Following last year’s bankruptcy of..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

No more arsenic on picnic tables

The St Louis Post-Despatch reports action by local senator Bill Nelson seeking an Environmental Protection Agency (EPA) ban on the use of arsenic as a pesticide on outdoor wood. Decking, playground equipment and picnic tables were cited. The EPA..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

City liable for emergency service failures

The First Appellate District of California has held that government agencies can be held liable for the actions of 911 emergency medical dispatchers. They are not entitled to the limited immunity of rescue personnel such as firefighters.This..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Explorer investigation refused

The US National Highways Transportation Safety Authority (NHTSA) has rejected a request from Bridgestone/Firestone to investigate the design safety of the Ford Explorer. As part of the ongoing tyre failure/rollover litigation, Bridgestone suggested..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Special liability market

Data from MarketStance estimates the US special liability market at nearly US$5bn, almost 13% of the total liability sector in the US. MarketStance also estimates the untapped market for special liability coverages (errors and omissions,..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Employment practice liability rises 44%

A new Jury Verdict Research report, Employment Practice Liability: Jury Award Trends and Statistics, 2001 Edition , has found an average 44% increase in jury awards for employment practice liability suits in 2000. This could relate to the time taken..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Mega-awards decrease

The annual survey of awards carried out by the National Law Journal (4 February 2002) shows a significant reduction in huge damages awards, 18 of more than US$100mn in 2001 down from 27 the year before. But the number of US$20mn verdicts remained..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Judge refuses brake claim consolidation

Judge Alfred Wolin, presiding over the Federal-Mogul chapter 11 bankruptcy, has refused a move by DaimlerChrysler, Ford, General Motors and other motor manufacturers to consolidate tens of thousands of asbestos claims from motor mechanics into a..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

$1.6mn verdict allows further suit

A US$1.6mn verdict against Pittsburgh Corning, which made asbestos pipe covering from 1962 to 1972, has been upheld in favour of the family of steelworker Joseph Cicchillo by the Ohio Eighth District Court of Appeals. He was represented by law firm..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Tobacco update

A claim based solely on vascular disease, allegedly caused by smoking, is being heard in the US District Court, Kansas City.The claimant argues that R J Reynolds and Brown & Williamson knew as far back as the 1940s that smoking caused vascular..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

BSE, CJD and F&M

Trustees have been appointed to administer the vCJD Trust fund to work under the chairmanship of Sir Robert Owen QC. The trust will function in allocating compensation to victims and families until cases exceed 250. If this occurs then a new trust,..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

EU adopts product safety directive for 2004

The Product Safety Directive 2001/95/EC, adopted by the EU in January this year, is due for implementation by January 2004. It is applicable not only to the usual run of consumer goods but also the food sector where it is not already covered by EU..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Scientists find new car effect

Scientists at the Australian Commonwealth Scientific & Industrial Research Organisation have found high levels of toxins are emitted from the interior of cars for up to six months after leaving the showroom. These include benzene, acetone,..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Dealer liable for Ford Explorer rollover

A Californian couple, Agop and Catherine Gozukara, severely injured in a rollover of their Ford Explorer, have settled their claim for US$9.4mn. The Department of Transportation also agreed a settlement of US$5.5mn. For the first time, a jury found..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Mugging the biggest risk?

A flurry of activity on the use and safety of mobile phones has brought the first definitive response. This comes from Lord Woolf in the Court of Appeal, increasing sentences on two young street robbers and issuing guidelines on tougher..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

GM crops expand

Despite caveats, the worldwide expansion of genetically modified (GM) crops continues. Substantial expansion of GM crops (altered for herbicides, pesticides or productivity) took place in 2001, with 5.5mn farmers using the technology and 52.6mn..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Security of costs

A party challenging the enforcement of a foreign arbitration award was entitled to a court order for security of costs against the holder of the award. Dardana Ltd v Yukos Oil Co • Queen’s Bench Division • The Times • 4..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Date of calculation of multipliers

With damages already agreed, the plaintiff of this case sought, under the Fatal Accidents Act 1976, for the multiplier to be assessed as at the date of death rather than the date of trial. The judicial decision was that despite the Law Commission..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Caution on overriding limitation

In disallowing an action against a retired solicitor more than eight years after the event, Lord Justice Parker confirmed the ruling of Mr Justice Neuberger in Gold v Mincoff Science & Gold that courts should be wary of being too easily..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Vicarious liability for contractor

Seeking compensation for fire damage to property following the removal of fire protection by a contractor from the fireplace of an adjoining semidetached house, the owner of that house was held to have vicarious liability in nuisance and negligence..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Offsite bullying

Although, generally, a school was only responsible for pupils when on the premises, in exceptional circumstances this can extend to the surrounding area. A failure to take reasonable steps to prevent bullying outside the school could give rise to a..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Partner’s costs

In a solicitor’s disciplinary action against one partner of a firm, a tribunal was entitled to make the partner appearing pay all costs even though others may have been at fault. Singh v Law Society • Queen’s Bench Division..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Vicarious liability of solicitor’s firm

A solicitor’s firm was vicariously liable for the actions of a solicitor in its employ in a plan to misappropriate funds from a pension scheme. This is with reference to Lister v Hesley Hall Ltd (2001) so that where an employer is shown as..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Conditions for ban on food import

It is not necessary, when refusing permission to allow import, to show that foodstuffs constitute an actual risk to public health. This decision, regarding a cargo of frozen cooked shrimps from Vietnam, relied on the on-the-spot latitude allowed..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Failure to remedy breaches human rights

It was held that the failure of a water company to take steps to remedy sewage discharge was a nuisance at common law and in breach of the human rights of the applicant, whose home had been repeatedly flooded. Marcic v Thames Water Utilities Ltd..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Functional or psychological ‘overlay’

Consideration has been given to a condition where a person claims to be suffering a physical injury but doctors are satisfied that the symptoms arise from a psychological state. In two cases at issue – because no psychological case had been..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Limit to grounds of appeal

Where an employment appeal tribunal had allowed appeal, limited to reasonably arguable points of law, it was entitled to reject attempts to raise other issues. This was in a claim originally for unfair dismissal, unfair selection for redundancy,..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Crown Proceedings Act

A provision of the Crown Proceedings Act preventing service personnel from bringing claims, unless they had permission from the secretary of state, for injuries suffered before 1987 was incompatible with the Human Rights Convention. Matthews v MoD..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Stigma not shown by facts

Although a former employee had the right to seek damages where his employer had failed to conduct business in an honest manner thus spoiling his chances of future employment, a judge was entitled to find, on the facts, that he had suffered no loss..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Guidelines for workplace stress claims

The ordinary principles of employers’ liability applied to claims for injury, whether physical or psychiatric injury or illness, when those injuries are alleged to have arisen from stress at work. Considering four appeals against awards for..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Will resilient claimant miss out?

Solicitors for Stephen Downing, whom the Court of Appeal cleared of a murder for which he served 27 years – with parole refused because he persisted in claiming innocence – will now be seeking compensation on his behalf. No one can fail..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Gurka makes equal pay claim

Former lance corporal Hari Thapa, born in the UK and holder of a British passport, is seeking £68,000 in back pay and pension rights from the Ministry of Defence with support from the Commission for Racial Equality. Like many others he was paid..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Rugby spectator sues

A small rugby club faces a claim for broken knee and other injury from a spectator. Although he was warned not to get too close to play, Cecil Dredge bases his claim on lack of restraining tape to keep the audience out of range of tackle..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Internees to sue MoD

Government ex-gratia payments of £10,000 to those held in Japanese camps during World War II, extended to ‘British civilians’, has foundered on definition of nationality. Although 23,000 claims have been met, others have been..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

Art auction houses face group action

Following settlement of US$512mn of US claims against art auction houses Sotheby’s and Christie’s, UK clients are mounting a similar claim. Niche UK law firm Class Action plans to bring suit in conjunction with US law firm Cohen,..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

New York faces rescue claims

While former New York mayor Rudy Giuliani is feted in London for his response to the events of 11 September, New York City and site owner Port Authority of New York & New Jersey face personal injury claims totalling US$7.2bn from 1,300 people..
Online Published Date:  01 March 2002
Appeared in issue:  140 - 01 March 2002

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