LLOYD'S is to continue pursuing its member Names to cover its losses, despite this month's Court of Appeal ruling in the cases of Names Clementson and Mason.
Names pressure group the Writs Response Group (WRG) saw a significant victory in the court decision that it could use the defence that Lloyd's central fund was in breach of Article 85 of the Treaty of Rome.
But now Lloyd's has confirmed that it can and will continue to draw on the members' funds, if and when required.
Richard Slowe, of SJ Berwin & Co which acts for the Writs Response Group, said: “As the Walker committee has already found that the central fund does indeed distort competition, I have every confidence that the Commercial Court will reach the same conclusion and declare void the arrangements for the operation of the central fund.”
Commenting on the significance of the ruling for Lloyd's Names, David Tiplady, a partner of DJ Freeman which is handling Lloyd's matters, says: “This decision merely delays matters and does not resolve them. It was always assumed that these issues, in particular the liability of the Names for losses, would go to trial. Indeed, that is what the Court of Appeal has said.
“Even if the Article 85 defence succeeds, that may not release the Names from their liabilities. The decision has basically changed the lights for the case from red to amber.”