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17 December 1996
Estate agents Connell Residential and associate company, ConnellFinancial Services, are to take Legal and General Assurance to the HighCourt in a battle over insurance commission. The companies accuse Legal andGeneral of stopping payment of commission on around 10,000 policies soldaround 1996. They allege Legal and General has refused, in breach ofcontract, to continue paying the commission even though Connells areentitled to renewal commission on the policies. They are suing Legal andGeneral in the Commercial Court for damages of around u1m, or a declarationthat they are entitled to renewal commission. Connells claim they arearound u950,000 out of pocket. Herbert Smith represents Connells.
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