Cox v Bankside Members Agency Ltd

JurisdictionEngland & Wales
JudgePhillips J.
Judgment Date16 January 1995
CourtQueen's Bench Division (Commercial Court)
Date16 January 1995

Queen's Bench Division

Before Mr Justice Phillips

Bankside Members Agency Ltd and Others

Lloyd's litigation - errors and omissions policies - claims to be met in order

Lloyd's claims to be met in order

Claims against errors and omissions underwriters made by assured agents or names, acting under the Third Parties (Rights Against Insurers) Act 1930, were to be met in the order that each claimant established liability and quantum by judgment in an action, an award in arbitration or settlement.

Claimants were entitled to be indemnified under the errors and omissions policies against interim payment orders and liability to pay pre-judgment interest.

Underwriters were entitled to set off costs incurred by them up to the level of excess against claims by or through an assured in respect of whom such costs had been incurred.

The Commercial Court of the Queen's Bench Division so held in an action brought by originating summons by the plaintiffs, Malcolm John Cox, together with numerous Lloyd's underwriting syndicates against Bankside Members Agency Ltd and other members' and managing agents and against various groups of Lloyd's names.

Agents sued by the names had the benefit, either individually or as a group, of errors and omissions (E & O) insurance cover from the plaintiffs. Competition existed for the limited amount of E & O recovery available among names asserting rights under the 1930 Act on the liquidation of their agents and the still solvent assured agents.

The plaintiffs' action sought to determine the principle whereby the competing claims would fall to be resolved together with the resolution of a number of issues of construction of the E & O policies.

Mr Jonathan Sumption, QC and Mr Michael Swainston for the E & O underwriters; Mr Edward Nugee, QC, Mr Richard Slowe, solicitor, and Mr Thomas Seymour for the Janson Green, Cuthbert Heath, Wellington, Secretan and Sturge names associations; Mr Anthony Bompas, QC and Mr Adam Fenton for the Devonshire names, the Bromley 475 and the D G King 745 action groups; Mr Geoffrey Vos, QC, Mr Jonathan Gaisman and Mr Stephen Phillips for the Gooda Walker names; Mr Jonathan Gaisman for the Aragorn names; Miss Siobhan Healy for Sword-Daniels; Mr Steven Berry for various assured agents; Mr Christopher Bathurst, QC and Mr Andrew Lydiard for the Feltrim names.

MR JUSTICE PHILLIPS said that on the question of the order in which the claims should be met the parties fell into two camps; those who...

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19 cases
  • Alfred McAlpine Plc v BAI (Run-Off) Ltd [QBD (Comm)]
    • United Kingdom
    • Queen's Bench Division (Commercial Court)
    • May 5, 1998
    ...[1966] 1 WLR 1334. Cehave NV v Bremer Handelsgesellschaft mbH (“The Hansa Nord”)ELR [1976] QB 44. Cox v Bankside Members Agency Ltd [1995] CLC 180. Farrell v Federated Employers Insurance Association LtdWLR [1970] 1 WLR 1400. Farrell, ReUNK [1970] 1 All ER 360; [1970] 1 WLR 498. Hongkong Fi......
  • Re OT Computers Ltd ; First National Tricity Finance Ltd v OT Computers Ltd ((in Administration))
    • United Kingdom
    • Court of Appeal (Civil Division)
    • May 25, 2004
    ...LtdUNK [2004] EWHC 200 (Ch); [2004] 2 CLC 586. Compania Merabello San Nicholas SA, ReELR [1973] Ch 75. Cox v Bankside Members Agency Ltd [1995] CLC 180; 671 (CA). CVG Siderurgicia del Orinoco SA v London Steamship Owners Mutual Insurance Association Ltd (The Vainqueur Jose)UNK [1979] 1 Ll R......
  • Denso Manufacturing UK Ltd v Great Lakes Reinsurance (UK) Plc
    • United Kingdom
    • Queen's Bench Division (Commercial Court)
    • March 3, 2017
    ...part of the insured to the third party.'" 98 The third relevant source is the judgment of Phillips J (as he then was) in Cox v Bankside [1995] CLC 180 whose judgment on the issue was upheld by the Court of Appeal and subsequently approved by the Supreme Court. At page 442 he said this: "The......
  • Cox v Bankside Members Agency Ltd
    • United Kingdom
    • Court of Appeal (Civil Division)
    • May 12, 1995
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