Litigation Recent Decisions 17/10/95

Taxation on damages awarded to Lloyd's Names

Deeny v Gooda Walker (1995).

CA (Simon Brown LJ, Peter Gibson LJ and Saville LJ) 5/10/95.

Summary: Whether damages awarded to Lloyd's Names for losses to underwriting business are subject to income tax.

Appeal by defendant managing agents against ruling that the £300 million damages awarded to Lloyd's names by Justice Phillips in Deeney v Gooda Walker & ors (1994) (QBD 4/10/94) for appellants' failure to exercise reasonable skill and care in conducting the plaintiffs' underwriting business, will be subject to tax in the plaintiffs' hands.