Roger Leggett & Ors v American International Group UK Limited
| Court | Queen's Bench Division (Commercial Court) |
| Judge | RECORDER JANET BIGNELL KC |
| Neutral Citation | [2025] EWHC 278 (Comm) |
| Date | 12 February 2025 |
| Year | 2025 |
| Counsel | Mr Dale Timson,Mr Carl Troman |
Neutral Citation Number: [2025] EWHC 278 (Comm)
Claim No: LM-2023-000077
IN THE HIGH COURT OF JUSTICE
BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
KING'S BENCH DIVISION
LONDON CIRCUIT COMMERCIAL COURT
Royal Courts of Justice, Rolls Building
Fetter Lane, London, EC4A 1NL
Date: 12 February 2025
Before :
RECORDER JANET BIGNELL KC
Sitting as a Judge of the High Court
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Between :
ROGER LEGGETT & 40 OTHERS Claimant
- and -
AMERICAN INTERNATIONAL GROUP UK
LIMITED
Defendant
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Mr Dale Timson (instructed by Orazio Grosso) for the Claimants
Mr Carl Troman (instructed by Kennedys Law LLP) for the Defendant
Hearing dates: 21, 22, 23 October 2024
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Approved Judgment
This judgment was handed down remotely at 10.00am on 12/02/25 by circulation to the
parties’ representatives by e-mail and by release to the National Archives.
Approved Judgment Leggett and others v American International Group UK
Limited
Recorder Janet Bignell KC:
1. This was the trial of a preliminary issue as to whether, in essence, the Defendant
professional indemnity insurer (“AIG”) is liable to provide an indemnity in relation to
the judgments on liability and damages which the 41 Claimants have obtained against
their former solicitors, Giambrone Law LLP (In Liquidation) (“the LLP”), in Claim No.
BQ-2015-00459 (“the Primary Proceedings”). AIG provided professional indemnity
insurance to the LLP under AIG UK Limited Solicitors Professional Liability Policy
Number 34018065 (“the Policy”) in respect of certain claims first made against the LLP
in the period 1 October 2008 to 30 September 2015.
2. In addition to the LLP, the Policy also provided insurance cover for certain claims
made against Giambrone & Law (“the Firm”), and its former partners, including Mr
Giambrone. Both the Firm and the LLP were manifestations of Mr Giambrone’s legal
practice from time to time. For the purposes of the Policy, the Firm is the “Prior
Practice” and the LLP is the “Successor Practice”.
3. The Primary Proceedings were originally commenced by the Claimants against the
Firm as the First Defendant, the LLP as the Second Defendant and Mr Giambrone as
the Third Defendant in May 2016. Almost all the Claimants initially retained the Firm
to act for them in 2007 and early 2008 in their proposed purchases of off-plan
apartments in the Jewel of the Sea development in Calabria, Italy. Following the
incorporation of the LLP, all the Claimants retained the LLP from about April 2008
onwards.
4. The Particulars of Claim in the Primary Proceedings alleged at paragraph 11 that:
“by reason of the Defendants breach of contract of retainer and/or negligence and/or
misrepresentation, deceit and deliberate concealment … the Claimants have suffered
loss and damage”.
The particulars of loss and damage were set out in an attached Schedule of Loss.
5. Materially, the Claimants’ claims against the Firm and Mr Giambrone were struck out
by Master McCloud as a result of the Claimants’ failure to comply with service
provisions. Judgment in default of acknowledgment of service was entered by Master
McCloud against the LLP on liability on 22 December 2017.
6. Mr Justice Fordham’s subsequent judgment on the assessment of damages payable by
the LLP in the Primary Proceedings is reported as Roger Leggett and 42 Others v
Giambrone Law LLP (In Liquidation) [2020] EWHC 724 (QB) (“the Judgment”).
Fordham J assessed the damages recoverable by the Claimants against the LLP in the
total sums of €3,467,489.74 and £39,850.23 and $4,594.65. The damages were made
up of sums assessed in respect of each individual Claimant or group of Claimants for
their lost deposits; expenditure on trips; Italian legal costs; reservation fees; lost rent
and loan interest, as set out in the Schedule to the Order dated 26 March 2020 (“the
Order”).
7. The LLP entered liquidation on 12 January 2011. Its Liquidators have no assets to
meet the damages payable under the Order.
Page 2
Approved Judgment Leggett and others v American International Group UK
Limited
8. By a Letter of Claim dated 29 April 2020 the Claimants then solicitors, Saracens
Solicitors Ltd, wrote to AIG requiring it to make payment of the damages assessed by
Fordham J and to engage in the process of agreeing costs. AIG’s solicitors, Kennedys
Law LLP, replied substantively on 14 May 2020 and declined the claim for indemnity.
9. On 4 March 2021 the Claimants issued this Part 8 Claim against AIG for indemnity
under the Policy. In paragraph 6 of the Details of Claim they state that the Primary
Proceedings:
“arose out of the negligence and breach of contract by [the LLP] in relation to 23
separate investments … in the Jewel of the Sea.”
And at paragraph 7:
“the right of the [LLP] to be indemnified under the Policy was transferred to and
vested in the Claimants, who are accordingly entitled to recover from the Defendant
the judgment sums and costs resulting from the proceedings before Mr Justice
Fordham.”
10. The remedy sought by the Claimants in paragraph 11 of the Details of Claim is a
declaration that AIG is bound to honour the Policy and to satisfy the individual
judgments in the Primary Proceedings. In the Prayer, the Claimants seek a declaration
that AIG is liable to satisfy the Judgment for damages and costs and interest ordered by
Fordham J in the Primary Proceedings and that the costs be provided for.
11. The Claimants’ witness statements in support of its Part 8 Claim are in substantively
identical form and comprise 4 short paragraphs. Consistently with the Claim Form,
each of the Claimants claims to recover from AIG the damages they were respectively
awarded by Fordham J. In paragraph 3 of each statement, “to prove [their] claim”,
they rely upon the Judgment, Master McCloud’s judgment in default, the content of the
Claim Form, the Particulars of Claim and the Policy.
12. Under the Third Parties (Rights against Insurers) Act 1930 (“the 1930 Act”), the
Claimants are entitled to enforce any right of indemnity which the LLP had against
AIG in respect of the judgments which the Claimants obtained against the LLP.
However, the Claimants’ rights against AIG are only as good as the LLP’s rights would
have been against AIG. If AIG had a defence to any claim which might have been
made by the LLP, AIG is entitled to rely on that defence against the Claimants.
13. AIG defends the Claim on the primary basis that it has no liability to provide any
indemnity under the Policy in respect of the Judgment and Order the Claimants have
obtained against the LLP. Its secondary case is, if (contrary to its primary position),
AIG is, in principle, liable to provide an indemnity in relation to the Claimants’
judgments against the LLP, the limit of liability under the Policy of £3m has been
completely eroded. That is, already paid out to third parties such that there is nothing
left to be paid to the Claimants (AIG’s “Aggregation Defence”).
14. The first limb of AIG’s primary defence is that the central finding made by Fordham J
in the Judgment at [13], and by Foskett J in the earlier case of Various Claimants v (1)
Giambrone & Law (A Firm) (2) Giambrone Law LLP (In Liquidation) (3) Allessandra
Bellanca (4) Anna Cinzia D’Arpa (5) Gabrielle Giambrone (6) Cristina Poncibo [2015]
Page 3
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