BROWN V KMR SERVICES LTD SWORD DANIELS V PITEL AND OTHERS

(1995) 4 Re LR 241

Court of Appeal

Before Lord Justice Stuart Smith, Lord Justice Peter Gibson and Lord Justice Hobhouse

Lloyd’s - Members’ agent - Duty of care to names - Members’ agent recommending name to allocate premium to high risk syndicates - Whether agent under duty to give proper advice in relation to such allocation - Extent of duty - Whether judge erred in concluding that had name been properly warned and advised, name would have allocated as much as 30 per cent of his premium income limit (p11) to high risk syndicates - Relevant figure - Whether, where it was most unlikely that any professional member of Lloyd’s foresaw magnitude of financial disasters that struck in 1980s, losses of type that occurred were foreseeable and, in fact, foreseen, even though their scale was not - Whether principle of indemnity disentitled name from recovering what he had lost in respect of each of his three causes of action - Whether judge rightly excluded from damages sum in respect of syndicate expenses on basis that if name had not been in high risk syndicates he would have allocated his pit to other syndicates and incurred similar expenses.