Intermediaries: collection of insurance proceeds

In Equitas Ltd and Another v Sande Investments Ltd and Others [2021] EWHC 631 (Comm), Leigh-Ann Mulcahy QC, sitting as a Deputy High Court Judge, considered the duties and liabilities of a sub-agent appointed by brokers to collect reinsurance recoveries on behalf of Lloyd’s Syndicates in run-off. The main points to arise from the decision is that sub-agents with such limited duties are not subject to the regulatory regime applicable to Lloyd’s brokers and that the duties are owed to the appointing brokers and not the Syndicates.

Equitas: the facts