Cox v Bankside Members Agency Ltd
| Jurisdiction | England & Wales |
| Judge | Phillips J. |
| Judgment Date | 16 January 1995 |
| Court | Queen's Bench Division (Commercial Court) |
| Date | 16 January 1995 |
Queen's Bench Division
Before Mr Justice Phillips
Lloyd's litigation - errors and omissions policies - 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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