Cases and deals
Aviation
- Acting in relation to the insurance and reinsurance issues arising out of the failures of six Boeing 702 satellites. The 702 satellites contained a new design feature - concentrators on the solar arrays - which resulted in gradual power failures
- Acting for insurers in a London arbitration involving a claim for US$162m arising out of the alleged theft of 13 aircraft by the Mexican lessors, with related reinsurance arbitrations
Corporate
- Advising Heritage on its listing on AIM, whilst Heritage simultaneously raised £15m by way of placing. The proceeds were used to fund growth in underwriting, to capitalise on the market conditions caused by the 2005 hurricane season and to provide a new team in underwriting personal lines risks. This was a creative solution to structural inflexibility in the Lloyd's market and gave Heritage the ability to increase its capacity mid-year to respond to market conditions. By creating a new syndicate to start underwriting immediately, Heritage will be able to expand its business in new and existing lines
- Acting for Cathedral Capital plc in a pioneering sale to Alchemy - the first acquisition by that private equity firm in the Lloyd's market in a deal valued at £113m. The investment by a private equity firm of Alchemy's size and reputation in a Lloyd's business is a substantial vote of confidence in the potential returns that are expected in the sector. This may be the first deal of its kind to the market but it is unlikely to be the last
- Advising ICAT Holdings, LLC (ICAT) on its establishment of a new Lloyd’s syndicate. ICAT, in conjunction with management and other third party investors, capitalised the business so that it has a capacity of US$148m in the first year of business. This was a ground breaking deal for a number of reasons. It is the first “new money” into Lloyd’s for 2007 and proves yet again what a compelling proposition Lloyd’s is for both underwriters and investors. Leveraging Chaucer’s expertise and the Lloyd’s licences means that ICAT can rapidly grow their business in a capital and cost efficient way, in the type of catastrophe risks for which the market is famous. The investment by private equity and other hedge funds shows again the potential returns that are expected in the sector and the confidence in Lloyd’s performance
Energy, construction and engineering
- Litigation concerning the alleged total loss of a pipelay construction barge which caught fire under tow in the Atlantic in 2004, valued at US$28m. Towage underwriters avoided the insurance policy for non-disclosure and also pursued quantum issues. An extremely contentious case, with a jurisdiction battle at the outset; we were granted an anti-suit injunction against proceedings issued by the assured in the USA (Texas), contrary to the exclusive jurisdiction clause in the policy
- Acting for insurers, assisting in the successful resolution of all claims arising out of a massive fire and explosion at an oil platform in 2005 following an allision between the platform and the support vessel
- On behalf of reinsurers, defending the policy claim (subject to Uzbec law but English jurisdiction), in the name of the local insurer in Tashkent in a case concerning the total loss of a well in southern Uzbekistan following a blow-out in December 2003. With the help of our Russian associate office and a Ukranian-qualified lawyer in our own team, we secured advice from local lawyers for presentation to the court by an America-qualified lawyer who worked in Tashkent for many years. A matter where our expertise both in technical issues and foreign jurisdictions made a difference
- A US$110m subrogated recovery action against sub-contracted designers of a new drill ship which suffered a catastrophic casualty by losing its 2km "drill string" and "blow-out-preventer" to the ocean bed. This case involved complicated technical issues, parties of various nationalities, numerous experts and a massive amount of discovery
- Acting for a variety of international insurers in relation to potential liability arising from the Buncefield depot explosion
- After winning the proceedings for our reinsurer clients in a dispute over premium paid in relation to the construction of a huge power project in India, we continued to act for the panel of international reinsurers in relation to questions over the distribution of claims monies
Financial and professional lines
- Senior partner Michael Payton acted for the Third Party to a £270m claim brought by the Football League against their solicitors for alleged professional negligence in connection with the sale of their Premier League TV rights. This is believed to be the largest claim ever made against a UK firm of solicitors. Widely reported in the press, and listed in The Lawyer as one of the top 5 trials (judgments) of 2006
- Acting for a partner in a City firm who had given advice to the company that was used as a vehicle for an insurance fraud, whereby a PLC was defrauded of several hundred million dollars by their own employees
- Continuing involvement in a number of matters arising out of disputes with the FSA, including mis-selling, money laundering and market abuse claims
Product liability
- Acting in relation to the multinational product recall of 100,000 high-quality (£1,000 each) TV sets by top-end manufacturer
- Acting in relation to an oxygenate put into petrol to make it burn cleanly but which contaminates ground water when spilled – alleged to be a defective product in its own right
- Acting for London-based reinsurers in respect of losses relating to the withdrawal of the anti-cholesterol drug Lipobay/Baycol in the US and subsequent litigation relating thereto
Life and long-term business
- Advised on the demutualization of Skandia Life and Partnership Assurance, the specialist annuity provider. This was the first ever cash demutualisation of a UK friendly society
Marine
- Success at trial before the Commercial Court for Total Loss Only reinsurers following the total loss of a vessel. Reinsurers declined to indemnify their reinsured on the basis that the leading underwriter clause in the reinsured’s policy with the owners had not been incorporated into the reinsurance and so reinsurers were not bound by changes agreed by the leading underwriter
Property insurance
- Successful defence of Canary Wharf's property insurers in respect of a claim arising out of the collapse in May 2000 of one of the cranes used in the erection of the Canary Wharf towers
Reinsurance
- Acting for reinsureds in an energy reinsurance cover dispute, which involved similar issues to Aon 77 (see below). The amount originally at stake was approximately £9m
- In December 2004 judgement in the Aon 77 litigation was handed down in favour of the reinsureds, for whom we act, following trial; the amounts in issue being over US$100m. Reinsurers appealed and in December 2005 the Court of Appeal handed down its judgment, again finding in favour of our clients. This was the most important Court decision in the field of reinsurance in 2005, addressing the issues of what, if any, duties a reinsured owes to its reinsurers; a question of critical importance to the market
- Acting for London market reinsurers in relation to the avoidance of the reinsurance of Pender, Cable & Wireless's captive insurer, on the grounds of non-disclosure/misrepresentation, sum at stake in excess of US$100m
Run-off
- Advising Royal & SunAlliance on transfers of general insurance business under Part VII of FSMA by 16 group companies to British Engine Insurance Limited, another company in the group. The value of the liabilities involved was £298.9m
- Advising CNA Insurance Company Limited in relation to a transfer of general business under Part VII of FSMA from CX Reinsurance Company Limited. The value of the liabilities involved was £64.9m
- Advising Brit in relation to a transfer of general business under Part VII of FSMA by Brit Insurance (UK) Limited to Brit Insurance Limited. The value of the liabilities concerned was £28m
Special risks
- Instructions on behalf of the London market in relation to a US energy company’s worldwide political risk insurance programme in respect of claims arising in Argentina, Venezuela, India and Ghana totalling in excess of US$500m
- Acting for credit insurers in a recovery action against alleged conspirators in a mobile telephone fraud. The case involved proceedings in various jurisdictions tracing the flow of money through various bank accounts, executing search orders and obtaining freezing orders
Personal accident
- Acting for Lloyd's syndicate in respect of claims relating to group accident policies, kidnap & ransom policies which cover personal accidents and death. Includes issues such as policy wording, aggregation and proof of loss
- Acting on behalf of personal injury insurers in relation to a number of high value claims involving professional footballers