LLOYD’S - SERVING STATUTORY DEMANDS ON NAMES

(Garrow v Society of Lloyd’s [2000] Lloyd’s Rep IR 38)

The long-awaited fraud trial, Jaffray v Society of Lloyd’s, is due to commence in January 2000. Pending the outcome of that decision, the preliminary skirmishing affecting the obligation of dissenting Lloyd’s Names to pay their Equitas premiums under the ‘pay now sue later’ obligation has continued right up to the trial. In Garrow v Society of Lloyd’s, decided in October 1999 and forthcoming in [2000] Lloyd’s Rep IR 38 , the Court of Appeal has upheld the decision of Mr Justice Jacob, [1999] Lloyd’s Rep IR 482 , setting aside a statutory demand on Names for unpaid premium. Had the statutory demand been allowed to go forward, the ability of affected Names to participate in the Jaffray action would potentially have been adversely affected.