Names issue writ against Clyde & Co

Lloyd's Names are suing Clyde & Co, a major legal player in the Lloyd's insurance market in connection with one of the biggest pieces of Lloyd's litigation to date.

Clyde & Co said it will contest the action.

The 4,000-member Sturge Names Action Group (Snag) is instructing Eversheds in this and other actions after collectively losing more than £1,000 million.

Eversheds partner Charles Lambrick said: “This action focuses on the role and conduct of advisers to managing agents at Lloyd's.

“It is a further dimension of the unhappy saga of recent Lloyd's history.”

Writs were served earlier this year by Eversheds in Snag members' actions against the Sturge holding company, the Sturge Managing Agencies, Members' Agents and syndicate auditors Neville Russell & Co.

The latest action against Clyde & Co concerns its role advising the Sturge Managing Agents of Syndicate 210.

These proceedings are “closely related” to one of the on-going court actions, concerning Sturge's decision to cancel a reinsurance policy in return for $80 million.

The policy gave unlimited protection to Syndicate 210 against US asbestosis claims arising from policies written by the syndicate pre-1969.

A Clyde & Co spokesman said: “We have heard that a writ has been issued by the Sturge Names Action Group in respect of advice given by this firm. We have not seen the writ, and so are unable to comment on its contents.”

Eversheds said the writ had actually been served.

Clyde & Co said: “We are aware of the action group's allegations generally, which are without foundation. The action will be contested.”