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Professional Indemnity: Analysis and Rationale
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01 August 2002
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145 - 01 August 2002
Insurance of Directors’ and Officers’ Liabilities
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01 August 2002
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AON professional risks
New business, formed by the merger of three former divisions, launched by Aon UK to serve the professional indemnity needs of professionals and financial services companies. Bringing together wide knowledge and expertise, innovative developments are..
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01 August 2002
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145 - 01 August 2002
Equitas reserves unchanged
An important market barometer of asbestos liabilities, the news that Lloyd’s run-off vehicle, Equitas, is not required to increase asbestos reserves is welcome. Year ending results for 31 March 2002 showed undiscounted reserves for asbestos..
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01 August 2002
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Lloyd’s offer
An offer of US$20mn has been put forward by Citibank, trustee of the Lloyd’s American Trust Fund, to the 1,400 US Names who refused the Reconstruction and Renewal package. They have been pursuing action against the bank alleging breach of..
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01 August 2002
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Insurers’ countermove against JP Morgan Chase
On 21 June eleven insurers filed suit in federal court, New York, charging JP Morgan Chase with conspiring to conceal Enron’s financial weakness. This a riposte to Morgan’s suit seeking US$1bn under insurer-issued surety bonds after..
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01 August 2002
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Two-plane collision
The mid-air collision on 1 July of Bashkirian Airlines TU154 and a Boeing 757 cargo plane operated by DHL Worldwide Express over Germany, with a death toll of around 70 the majority of whom were school children, has raised questions of air traffic..
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01 August 2002
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China airlines flight CI-611
Further detail on the insurance backing for the 225 victims of the crash, on a flight from Taipei to Hong Kong, estimates the cost to reach US$145.3mn including both life insurance and nonlife claims.
China Air has set up a relief fund for families..
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01 August 2002
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Sex abuse hikes liability rates
Revelations about child sex abuse of Roman Catholic priests in the US, and expectations that raised public perception will lead to additional claims in this area, have prompted a sharp increase in premiums, and coverage limits, on liability policies..
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01 August 2002
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Ford targeted by State Farm
Ford Motor Co is facing suit from State Farm Insurance in the Supreme Court of West Virginia relating to a parked car fire in 1996. This arises from what the claimant describes as “abusive claim handling conduct” and seeks additional..
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01 August 2002
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Court jurisdiction within the United Kingdom
Article 17 of Schedule 4 to the Civil Jurisdiction and Judgments Act (1982) was not to be construed as to prevent exclusive jurisdiction being created for hearing in the courts of one part of the United Kingdom. Held that the modification of wording..
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01 August 2002
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Liability Underwriters’ Group Conference
3–5 September 2002 • Queens’ College, Cambridge. • The usual lively format of masterclasses, symposium discussion and a galaxy of authorities – insurance and legal – examine the full gamut of hot issues.
Details..
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01 August 2002
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South Korean product liability law
A new product liability law, effective from 1 July of this year, requires that various associations of the automobile and other major industries set up centres to assist in the speedy settlement of claims concerning defective goods.
These centres..
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01 August 2002
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European cross-border disputes
CMS Cameron McKenna have prepared a Guide to Arbitration in Europe covering 13 European jurisdictions and focusing on the commencement of arbitration and appointment of arbitrators, proceedings, awards and enforcement and the validity of such..
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01 August 2002
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Commercial mediations down
The number of commercial mediations carried out by market leader CEDR (Centre for Effective Dispute Resolution) fell by 28% last year, down from 467 to 338. The value remained virtually unchanged though with two strong bandings. 265 exceeded..
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01 August 2002
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Legal services Ombudsman report
The Law Society’s handling of complaints against solicitors is still “shaky”, according to the annual report of the Legal Services Ombudsman. After achieving a good clearance of backlog of cases, this is now rising again, up from..
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01 August 2002
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Disability rights consultation
A consultation document has been published by the Disability Rights Commission following its first review of the Disability Discrimination Act 1995. It contains a number of proposals for change of law, some already put forward two years ago by the..
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01 August 2002
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145 - 01 August 2002
First claims direct test cases decided
The first tranche of Claims Direct’s test cases on the appropriate level of after-the-event premiums, recoverable from an unsuccessful defendant, set a figure of £621.13 where the original claim had been for £1,312.50. Judgment was..
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01 August 2002
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Limitation proposals accepted
The Government has accepted, in principle, the recommendations of the Law Commission on time limits in civil claims. Currently the Limitation Act of 1980 applies different periods depending on the type of claim. Under the new proposals there would..
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01 August 2002
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Indian corporates rush for cover
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01 August 2002
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Avner takes steps for dissolution
Avner, the motor vehicle accident victim insurance association owned by Israeli motor insurers, will tender out sale of its future claims portfolio for US$300 to US$400mn. Completion will allow Avner dissolution to take place early next year when a..
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01 August 2002
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Australian public liability insurers saw a decade of loss
Partly to refute suggestion in a report commissioned by the Law Council of Australia that public liability insurance was heading for unprecedented profits, the Insurance Council of Australia commissioned an actuarial analysis of the sector. This..
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01 August 2002
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Retroactive insurance analysis
The 24 June 2002 issue of Business Insurance carries detailed analysis of the use of retroactive insurance (a form of finite risk insurance) by insurers to bolster asbestos reserves for past losses. The mechanism is similar to the innovative..
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01 August 2002
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Tillinghast D&O Survey: 2001
The Tillinghast – Towers Perrin’s 2001 Directors and Officers Liability Survey shows sharp increases in the costs of litigation against directors and officers, particularly from shareholders, and widespread concerns about high-profile..
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01 August 2002
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Solicitors’ ARP to grow
The assigned risks pool (ARP) for law firms unable to find insurance in the market is expected to grow this year as the hardening market and higher premiums bite at firms with a poor claims record. As a result, warns David Coughlan, head of..
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01 August 2002
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ATE as a disbursement
Innovative to the end, Claims Direct had set up a new, and safer, model of premium finance. Agreement with Isle of Man Assurance (IOMA) to market their after-the-event legal expenses LitigationPlan in conjunction with a CFA included the feature of..
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01 August 2002
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PRI assigned A- rating
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01 August 2002
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Training for web-based asbestos claims managers
The Claims Resolution Management Corporation (CRMC) has trained more than 200 professionals from 63 top plaintiff law firms on the use of e-Claims(TM), the first interactive, Web-based electronic claims processing tool for trusts, law firms and..
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01 August 2002
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Online blind bidding service “viable”
Leading personal injury law firm, Thompsons, has concluded the first part of an online settlement pilot, through blind bidding settlement service WeCanSettle.com and a major UK insurer. As the pilot moves to a more extensive phase, five other firms..
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01 August 2002
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Spanish brokers press independent
A number of Spanish insurance brokers, not included in the compromise deal reached between defunct Independent Insurance and British brokers, are seeking £2.3mn for almost 400 claims, unpaid to their clients. Liquidator PricewaterhouseCoopers..
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01 August 2002
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BCCI settlement
Former employees of the Bank of Credit and Commerce (BCCI) have reached agreement with liquidators that could free up US$700mn for creditors. The settlement, no details as yet, covers litigation seeking damages stemming from fraudulent and dishonest..
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01 August 2002
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Xerox faces 401 (k) plan class suit
Restatement of US$6.4bn revenues of the past five years has sparked moves for a class action of more than 50,000 individuals who participated in Xerox retirement plans from February 1998 up to the present. In Thomas Patti et al v Xerox Corp
it is..
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01 August 2002
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PwC agrees audit fine
PricewaterhouseCoopers (PwC) has agreed to pay US$5mn, the largest such fine to date, to settle charges by the US Securities and Exchange Commission of violating federal independence rules in 16 separate audits over the last six years. Two of which..
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01 August 2002
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Shareholders sue Merck
A shareholder suit, run by US law firm Milberg Weiss Bershad Hynes & Lerach llp, alleges that Merck artificially inflated its reported revenues in 2001 by the inclusion of US$4.6bn revenues that are, in fact, retained by pharmacies. They also..
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01 August 2002
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Disappearing Andersen
With the expected completion of the takeover of the UK arm of Andersen by Deloitte & Touche the Andersen name will disappear in the UK. Regulatory clearance appears to have taken account of the fact that, whether the takeover approved or not,..
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01 August 2002
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Lehman caught in Enron web
American National Insurance has filed suit against Lehman Brothers Holdings, claiming that the financial services firm knowingly misled investors about the value of Enron stock and blaming their advice for US$9mn losses.
Maintaining that Lehman had..
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01 August 2002
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US senate condemns Enron directors
The outcome of the US Senate’s six-month inquiry into the collapse of Enron has led to condemnation of its directors for “knowingly” allowing high-risk accountancy practices and failure to “protect Enron shareholders from..
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01 August 2002
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WorldCom
Reporting of the apparent US$3.8bn fraud by telecommunications giant WorldCom is so widespread that comment here is unnecessary.
Despite Andersen’s 13 years as external auditor, during which they claim they “complied with Securities and..
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01 August 2002
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Change of employer for clergy?
The Department of Trade & Industry has issued a discussion paper on the extension of employment rights to ministers of religion. It suggests that they become eligible for protection against unfair dismissal and entitlement to parental leave and..
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01 August 2002
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Failure to establish whistle-blowing procedures
The Work Foundation, formerly the Industrial Society, has found that half the UK organisations surveyed had failed to set up internal reporting procedures whereby staff can raise concerns about unethical corporate behaviour. Three years after the..
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01 August 2002
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Flexible working rights
The decision of the Employment Appeal Tribunal (EAT) in Sykes v JP Morgan
underlines new rights to flexible working hours. The applicant, having sought flexible working hours so as to have more time with her children, was declared redundant. She..
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01 August 2002
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Rights by agreement
Equal employment, health and training rights for “tele” home workers have been agreed between employers and trade unions, the first time such an EU-wide agreement has come from negotiation rather than Euro-legislation. It will cover..
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01 August 2002
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Union representation
The European Court has ruled that employers may not use financial incentives to encourage employees to give up such rights. Commenting, the Department of Trade & Industry stated that a review of the Employment Relations Act was due to be..
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01 August 2002
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Implementation of the young workers directive
Following consultation, draft regulations have been published which will implement the remainder of Directive EC 94/33 relating to young people at work. These are defined as between school leaving age and 18 years.
Existing provision for 12 hours..
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01 August 2002
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Employment Act
The Employment Bill became an Act on 8 July, along with a timetable for implementation (see DTI website at www.dti.gov.uk/er/employ/index.htm).
Rights for fixed term workers operational from 1 October, 2002, family friendly and flexible working from..
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01 August 2002
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Legal duty of ambulancemen
A county court decision and award of £34,000 to ambulanceman Anthony King who suffered injury when his partner slipped on a stairway and he was left supporting a heavy man in a carry-chair, has been reversed. The initial ruling against Sussex..
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01 August 2002
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Dangers on remote tours
An article in the British Medical Journal of 27 April 2002 highlights the health risks facing those opting for adventure holidays in remote places. It further points out that neither tour operators, the Air Travel Organisers’ Licensing (ATOL)..
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01 August 2002
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Austrian ski train fire
The trial of 16 people accused of causing the deaths of the 155 passengers when a funicular train caught fire in a tunnel at Kaprun has commenced, two years after the event, in Salzburg District Court. Train officials and inspectors face charges of..
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01 August 2002
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Railway safety improves
Against media perception, measured against a number of key targets railway safety improved by 23% in the year ending in March of this year, according to industry watchdog Railway Safety. The Potters Bar accident will be included in next year’s..
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01 August 2002
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HSE report on Potters Bar rail crash equivocal
The second interim report by the Health & Safety Executive (HSE) into the Potters Bar derailment, which caused seven deaths and more than 70 injuries, stays with their initial assessment of causation by loose connecting nuts. However, their..
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01 August 2002
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Washington residents can sue
A federal appeals court has ruled that around 4,000 Washington state residents can sue for illnesses including thyroid, bone, breast and salivary cancer alleged to have been caused by radiation from the plutonium plant at Hanford Nuclear..
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01 August 2002
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Chernobyl fallout
A study by statistician John Urquhart, further detail in New Scientist
29 June 2002, indicates some of the effects on England and Wales of the Chernobyl disaster of 1986. In the three years following he estimates a related increase of 200 in..
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01 August 2002
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Radiation exposure at Sellafield
Twelve years ago, research by Martin Gardner of the University of Southampton suggested a higher risk of blood and lymph cancers among the children of men working at Sellafield nuclear plant. Subsequently rubbished, a new study, part-funded by the..
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01 August 2002
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Liability management authority
A White Paper has put forward proposals for the new Liabilities Management Authority to take over responsibilities from British Nuclear Fuels (BNF) and the UK Atomic Energy Authority (UKAEA). Expected to make the privatisation of BNF easier, the..
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01 August 2002
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NATS pays more for less
UK air traffic control, the National Air Traffic Services (NATS), is reported as having paid US$1.8mn for cover of US$1.5bn. This a 50% rise on premium paid for last year’s higher cover of US$1.8bn.
Last year NATS was part-privatised with the..
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01 August 2002
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Bahrain airport crash
The 143-death crash of a Gulf Air A320 in August 2000 was the result of a series of cockpit errors in the attempt to land. Other factors, such as crew training and the flight data analysis system may have also contributed. This the finding of the..
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01 August 2002
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Sweden scraps terror guarantee
Sweden has ended the aviation terrorism guarantee, forcing their airlines back onto the commercial market. The Swedish government is still considering whether to participate as guarantor in mutual fund Eurotime, but is showing reluctance to moving..
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01 August 2002
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Global aviation war pool
Further detail has been released by the Council of the International Civil Aviation Organisation. Set up to provide cover, to meet regulatory requirements, to airports, ground handlers and airlines third-party war risk, the scheme will have a..
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01 August 2002
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Gulf war jet losses more than one event
A ruling of the Commercial Court, in MA Acott v Copenhagen Re
, has gone some way to clarifying the vexed question of single or multiple losses. In determining the status of losses to British Airways (BA) and the Kuwait Airways Corporation, arising..
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01 August 2002
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Oil industry “hold harmless” goes live
An Industry Mutual Hold Harmless Scheme under which oil and gas operators on the UK Continental Shelf move the traditional individual agreements into a uniform process has gone live from 1 July 2002 with over 90 initial participants. Made feasible..
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01 August 2002
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US port liability premiums rocket
It is not only the Port Authority of New York that is facing rocketing premiums (fourfold to US$16mn) for greatly reduced coverage following 11 September. Ports throughout the US are experiencing the same phenomenon. Port authorities, stevedores and..
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01 August 2002
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Webbers falls bridge collision
Magnolia Marine Transport, owner of the barge that caused the collapse of an Interstate 40 bridge in Oklahoma, is seeking to limit its liability. This through petition to federal court to apply the maritime Limitation of Liability Act which provides..
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01 August 2002
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Exxon not to pay additional expenses
A US$12.7mn claim from six municipalities, filed soon after the 1989 oil spill by the Exxon Valdez
, dismissed in 1994 and reinstated in 1999, had amounted with interest to US$30mn. Now an Alaska Superior Court jury has found that Exxon does not..
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01 August 2002
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Another GM pollen study
An Australian study, details published in the journal Science
of June 2002, shows that pollen can travel and cross pollinate for up to two miles. Pollen from genetically modified (GM) canola had spread to 63% of other fields in the area. However,..
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01 August 2002
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Tyre threat
With the dumping of tyres in landfill sites becoming illegal in January, the Environment Agency has warned of up to 13mn tyres already stockpiled unsuitably in fields and quarries, and the risk of fire and pollution. Implementation of a European..
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01 August 2002
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Bottle users to register
A High Court decision in R (on the application of Valpak Ltd) v Environment Agency
clarifies the status of bottles and cans as “packaging” under the Producer Responsibility (Packaging Waste) Regulations 1997. As a result vendors and..
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01 August 2002
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Family disputes
Friction among potential beneficiaries of the US$4bn Victim Compensation Fund has broken out, according to a report in the New York Times of 17 June 2002. Some of these have already emerged in the courts, focusing on such issues as legitimacy of..
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01 August 2002
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Families file against port authority
More families are joining around 200 that have already filed claims against the New York Port Authority alleging that the Port Authority is liable for failing to evacuate the south tower of the centre immediately after the attack on the north..
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01 August 2002
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Mold a new WTC risk
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01 August 2002
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Attorney-client privilege curbed
Judge John Martin has ruled that attorney-client privilege does not apply to conversations between attorneys representing World Trade Centre (WTC) leaseholder Larry Silverstein and insurance brokers. They will now be subject to question by lawyers..
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01 August 2002
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Mold may lead to anti-broker litigation
US real estate brokers and agents are warned of the “potentially grave threat” of action against them, should properties they deal with be found to contain mold. This according to toxic mold litigation expert Robert Shulkin, senior..
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01 August 2002
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Ford/Firestone case commences
Both Ford and Firestone having settled hundreds of claim related to tyres and rollovers, the first case jointly against both defendants appears ready for court hearing. This concerns the deaths of Gary Meek and his granddaughter following a tyre..
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01 August 2002
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Alaska cleanup
The tax that funded CERCLA (Comprehensive Environmental Response, Compensation and Liability Act) alias Superfund raised over US$1bn a year from oil, chemical and other industries but was discontinued in 1995. Facing expected dwindle to US$28mn by..
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01 August 2002
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Further restriction of ADA
Responding to the US$1.2mn punitive damages awarded to a disabled man injured while being transported in city police van, the Supreme Court has further interpreted the Americans with Disabilities Act (ADA) to exclude punitive damages awards against..
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01 August 2002
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Ex-addict’s bias suit carried
The 9th US Circuit Court of Appeals upheld a suit, claiming bias under the Americans with Disabilities Act, for refusal to rehire a rehabilitated addict. In Joel Hernandez v Hughes Missile Systems Co
refusal to rehire, because of an unwritten..
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01 August 2002
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Scrapping of joint & several liability
The state of Pennsylvania has brought in legislation to scrap the principal of “joint and several” liability. SB 1089 creates a proportional liability system in which defendants’ liability will be assessed as a percentage of..
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01 August 2002
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Policyholder can target insurer of choice
A ruling of the Ohio Supreme Court, in an US$11mn environmental coverage dispute between Goodyear Tire & Rubber Co and insurers, allows the company to choose which of the many insurers providing cover during the contamination period may be..
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01 August 2002
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Alimta likely to feature in future compensation levels
Eli Lilly has developed a chemotherapy drug, Alimta, to the stage of showing positive results in the treatment of those suffering from mesothelioma caused by exposure to asbestos. Results from clinical trials showed that patients treated with Alimta..
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01 August 2002
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Cape delays payment
Citing a major financial restructuring exercise, UK-based Cape plc has delayed payment of the first £11mn of a £21mn settlement with 7,500 South African workers suffering asbestos-related diseases. The claimants worked for Cape before..
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01 August 2002
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Babcock & Wilcox given more time
The US Bankruptcy Court has granted Babcock & Wilcox more time, until 30 September, to try to reach a mediated agreement with asbestos claimants. The company filed for Chapter 11 early in 2000 and a year later the court appointed Professor..
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01 August 2002
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Date set for claims against Federal-Mogul
The US Bankruptcy Court has set 3 March 2003 as the final date for claimants to file against Federal-Mogul and any of its 156 affiliates in their Chapter 11 cases arising from property damage within the US or Canada caused by asbestos. The company..
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01 August 2002
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2000 verdict upheld against PPG
The Ohio Supreme Court upheld an award of US$1.6mn to the widow and children of steel-worker Joseph Cicchillo, who died from mesothelioma. This arose from prolonged exposure to asbestos-containing pipe insulation manufactured by Pittsburgh Corning..
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01 August 2002
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US$9mn joint compound verdict
The Maryland appeals court has upheld a US$9mn verdict against Georgia-Pacific arising from asbestos-related illness in a man who used G-P manufactured asbestos-containing joint compound in 1973 when renovating his home. While this claim is..
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01 August 2002
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Air France to pay for 1950s negligence
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01 August 2002
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French electricity group signs accord
The French electricity group EDF and unions representing all workers in the gas and electricity divisions have signed an amendment to the 1998 agreement on asbestos-related health risks.
One of the first agreements of its kind, it provides for the..
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01 August 2002
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Fairchild reasoning published
The House of Lords has now published the reasoning behind their already-delivered decision for the mesothelioma claimants [See LRI
June 2002 and Case Update in this issue]. Where the claimants could not establish which employer was responsible for..
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01 August 2002
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Tobacco update
The first civil suit to be brought in New Zealand,
against 78%-of-the-market-holder British American Tobacco (BAT) comes from Janice Pou who is dying of lung cancer. Alleging that BAT’s negligence led to her addiction at the age of 17 and..
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01 August 2002
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Foot-and-mouth disease
A plethora of reports on the handling of last year’s outbreak of foot-and-mouth (F&M) disease in the UK have appeared in the last few weeks. The over-riding diagnosis is that management by all agencies involved was fragmented, confused..
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01 August 2002
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Swimming pools below standard
According to an investigation by Members of the Institute of Sport and recreational Management, commissioned by Consumers’ Association Magazine Which?
, many swimming pools fall below acceptable health standards. Measure of bacterial content..
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01 August 2002
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CCA wood preservative
A growing number of suits are being filed in the US alleging health problems caused by exposure to arsenic in wood preservative. Lead class action lawyer is Hugh McNeeley of Louisiana. Chromated copper arsenate (CCA) is widely used in the US as a..
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01 August 2002
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Euro-MPs vote for stringent GM rules
European members of Parliament have voted for stringent restrictions on the sale of genetically modified (GM) products. Setting a strong “traceability” regime, all foods and drinks with 0.5% of GM traces are to be so labelled.
The US is..
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01 August 2002
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Ephedra out of PL policies
Product liability insurers in the US are, in effect, excluding dietary supplement ephedra (or ephedrine) from policies, following its citing in a number of wrongful death suits. The substance is used in hundreds of dietary pills and supplements..
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01 August 2002
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Judge sues Coca-Cola
Obese claimants seeking damages for lack of warning on food products is not confined to the US (see “Is food the next tobacco?” in last issue of LRI
). Judge Brinkmann of the Neubrandenburg regional court seeks €7,000 from..
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01 August 2002
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Chemical changes identified in Gulf veterans
Research by Dr Robert Haley of the Southwestern Medical Centre at the University of Texas, yet to be published, shows similar results to those of consultant physician Goran Jamal of Imperial College School of Medicine, London, largely ignored by..
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01 August 2002
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Mobile phone research shows theoretic risk
A two-year study by the respected Finnish Radiation and Nuclear Safety Authority has found that, in laboratory conditions, the cells of blood vessels behave abnormally when subjected to radiation emissions even when these are within the current..
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01 August 2002
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Bayer action awaits Legal Aid decision
The first UK class action against Bayer (producer of the anti-cholesterol drug known as Baycol in the US and Lipobay elsewhere) are awaiting decision on their appeal against refusal of Legal Aid funding.
The 30 participants of this first attempt to..
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01 August 2002
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“Pill” cleared of breast cancer link
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01 August 2002
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GPs want MMR taken out of pay equation
While generally supporting the triple MMR vaccination of children, family doctors at the BMA conference have called for a change in the way they are paid for reaching targets. Currently GPs get almost £1,000 for a 70% take-up, and £3,000..
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01 August 2002
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Refined MMR research
The Dublin team, led by John O’Leary and published in the April issue of Molecular Pathology
, has carried out further research on the same subjects as used in their primary research. These twelve children, chosen at random from the 75 out of..
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01 August 2002
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145 - 01 August 2002
CMO calls for tighter safety standards for vaccines
In a report on the withdrawal, two years ago, of polio vaccine found to be still using beef products the Chief Medical Officer, Sir Liam Donaldson, criticised the Medicines Control Agency (CMO) for allowing 35mn vaccine doses to be produced and..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Old X-ray machines a risk
A study, led by Dr Aparna Mohan on behalf of the US Food & Drug Administration and published in the Journal of the National Cancer Institute of June 2002, shows a risk of breast cancer linked to the use of old X-ray machines.
This based on..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Report of hospital errors
The National Patient Safety Agency’s six-month pilot study of reports of medical errors in NHS hospitals is not to be published. This, reasonably, because extrapolation from 28 NHS authorities shows a lower total than is thought accurate. The..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
£15,000 funding for clinical negligence ADR study
Responding to the finding of the Public Accounts Committee that clinical negligence claims take an average of 5 years to conclude and that 8% take 10 years or more, the Legal Services Commission has made the sum of £15,000 available for a pilot..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Legal aid flaws in handling clinical negligence claims
In summarising the position I can do no better than to quote from the submission of Dr Anthony Barton (solicitor and medical practitioner) to the Public Accounts Committee (PAC) taken, with comments, from their report into the handling of clinical..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Bell nuisance
The bishop of a diocese in which the ringing of a church’s bells could constitute a private nuisance was not liable. Canons of the Church of England state that the responsibility for operation of bells lies with the vicar of the..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Council’s liability for state of footpath
A footpath of a housing estate, built by a council in its capacity of housing authority, was a highway maintainable at public expense under the Highways Act 1980 where it had previously had that status under the Highways Act 1959. As such the..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Court martials offer fair hearing
The hearing of civil offence cases by court-martial was not incompatible with the right to a fair hearing by an independent and impartial tribunal under the European Convention on Human Rights.
Regina v Spear; R v Hastie; R v Boyd; R v Williams et..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Right to trade union representation
It was held that an employer’s use of financial incentives to encourage employees to give up collective bargaining rights was a breach of human rights.
This ruling stemmed from 11 UK-based claimants, dock and transport workers and journalist..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Employer not liable for injury on another’s premises
The claimant suffered injury from a falling barrow when a manhole cover gave way. He was, at the time, working as directed on the premises of the Second Defendant (who admitted a measure of liability). At first instance it was held that, pursuant to..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Manual handling
A refuse collector claimed back injury from lifting bags of rubbish but, despite admission by his employer that no training had been given his claim was dismissed.
This decision was upheld on appeal as there was no evidence showing that training..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Issue in stress-at-work claims
In a stress claim from what is becoming known as a “Walker” claimant (one who suffers a second bout of illness) the court of appeal considered the major issues in such claims:
is it the responsibility of the claimant to tell the..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Joint liability of employers
The full ruling of the House of Lords on apportionment of liability for asbestos-caused mesothelioma was published on 21 June 2002. As already announced, it was held that the injustice of denying remedy to an industrially injured employee outweighed..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Great care in assessing tribunal perversity
Held that, in considering an appeal alleging perverse decision by an employment tribunal, the appeal tribunal should only accede where an overwhelming case was made out showing that the tribunal had reached a decision which no reasonable tribunal,..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Registration of foreign judgment
An action for negligent dental treatment, started in 1984 and stayed at the claimant’s request in 1986, was finally heard in Holland in 1998. During that time the dentist concerned had moved to England, and was unaware of the proceedings or..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Repetition of slander
Where the natural and probable result of a defendant’s conduct was the repetition by a third party of a slander, it was for the jury to decide on the facts whether the defendant was liable for the additional damages caused.
McManus and Others..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Single or aggregating event
A ruling that the loss of a British Airways (BA) jet was a separate event from losses to Kuwait Airways Corp (KAC), even though both occurring in the course of the Gulf War and at the same location, has gone some way to clarifying reinsurance law in..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Entitlement under “full liability” provisional settlement
Agreement by the defendants to an interim payment on a full liability basis meant what it said and opened the way for subsequent claim for the effects of the same harm. The payment of £4,000 was made in respect of pleural plaques caused by..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Service of documents by post
In considering an appeal regarding an out-of-time claim, where postal delivery times played a part, the Court of Appeal (CA) noted that Part 6 of the Civil Procedure Rules had laid down clear principles governing the service of documents by post...
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Consequential loss not covered under public/products liability policy
A trader supplied sugar to a mincemeat manufacturer; it was contaminated with magnetite. While the trader admitted liability for breach of contract, it rejected an additional claim for loss arising from the manufacturer losing two important..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Causation crucial to building contract claim
Where a claim was made for global loss and expense as a consequence of breach of a construction contract it would fail if any material cause of the global loss was something for which they defender had no legal liability. The logic of such claim..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Value of GM crop
In a trial alleging criminal damage to a crop of genetically modified (GM) maize, it was agreed that the forum depended on the value of the crop ie jury trial only available when the lost value was clearly more than £5,000. As the evidence..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
No costs for time spent on exaggerated claim
Held that a defendant who causes a court to spend time considering a deliberately exaggerated claim, for the purpose of gain, is not entitled to claim the relevant costs. This in a case of hand bruising, eventually settled for £2,500 but having..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Privilege in relation to wasted costs defence
When a barrister was precluded by legal professional privilege from giving full answer to an application for a wasted costs order, the court should proceed with great care and not make an order unless fully satisfied that nothing the barrister could..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Cost not part of settlement offer
..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Funding of personal injury claims
The House of Lords has ruled that the responsibility for supervising developing funding methods, under the Access to Justice Act, lies with the Court of Appeal. See lead article.
Callery v Gray (Nos 1 and 2) • House of Lords • The Times..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Strict liability of director
The offence of acting as company director while an undischarged bankrupt was an offence of strict liability. Whether or not the defendant had taken part in an directorial activities was irrelevant.
Regina v Doring • Court of Appeal (criminal..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Requirement to change insurer does not give rise to duty as a broker
In a complex story of a bank loan to refurbish a property tied to a requirement to change to the bank’s approved insurer and resultant delays, discovery of structural damage not identified in the bank’s survey, possession and sale of..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Barrister’s negligence
A barrister was found negligent in telling her client that there was a good chance of acceptance of additional medical evidence. On her advice, her client rejected an offer of £150,000 in the belief the judge would accept the new evidence but..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
School’s duty to youngsters on school trips
Reversing the High Court decision in which a school found 50% liable for injuries sustained by a young skier [reported in LRI
September 2001] through their failure to “react appropriately to a demonstration of irresponsibility” in his..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Mistrust hinders rehab: comments invited
A report by the Rehabilitation Working Party on progress of encouragement by both sides of the inclusion of rehabilitation in the personal injury claims process says that mutual mistrust is a problem.
Research shows that while three-quarters of..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Awards & settlements
Psychological damage to horse
following a road accident leads to £1,000 compensation to showjumper owner. The beast’s nervousness had reduced its value. Believed to be the first compensation awarded based on psychological rather than..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Vodafone to defend claim
Already involved in US class litigation through their 45% holding in the US company Verizon Wireless, Newbury-based Vodafone are facing high value claims from four Americans claiming that their ill health, including brain cancer, has resulted from..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Apartheid victims target Swiss banks
Holocaust veteran lawyer Ed Fagan has lodged claims in Manhattan federal court against Citygroup, UBS and Credit Suisse alleging these banks helped to finance the South African apartheid system. Identical claims against UBS and Credit Suisse has..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Chagos Islanders sue
Unsatisfied with a December 2000 ruling that they could return to a cluster of outer islands of the Chagos group, as lack of infrastructure makes life there impossible, the near-5,000 islanders, evicted from the main island and subsidiary island..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Railtrack faces litigation
It is unclear whether Network Rail, poised to take over Railtrack, will take on liability for 20 outstanding legal cases. These include claims for damages arising from various high profile crashes of recent years, also a £130mn claim from..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Child migrant group seek £400mn
Now aged 86, Harold Vennell seeks £400mn from Barnardo’s as compensation for being shipped out to Canada in 1932, as one of the 30,000 children in the Child Migrant Scheme, against his will and that of his destitute mother who had placed..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Private patient sues NHS for refund
Tom Aynsley had a collapsed lung and, advised he needed an operation as soon as possible, waited for three weeks. He then spent his savings of £6,000 on private surgery which was carried out the next day by the same specialist who would..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Wrong diagnosis
Norman Kyte, told he had terminal and inoperable pancreatic cancer, spent £4,500 on a world cruise. Also three months later, re-diagnosed as clear, he plans to sue Weston General Hospital in Somerset for mental anguish and the cost of the..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Erroneous diagnosis of epilepsy
Group legal action has been launched against Leicester Royal Infirmary by parents of 200 children wrongly diagnosed with epilepsy but still awaiting case re-assessment a year after the suspect consultant paediatrician was suspended. In the meantime..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
“Shipton” relatives to sue GMC
Relatives of the more than 200 victims of former doctor Harold Shipman are preparing to bring action against the General Medical Council (GMC). This will allege negligence in failing to strike him off the medical register in 1976 following his..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002
Scotched, not killed
Claims Direct is, in effect, dead. And it has taken the insurance industry a convoluted struggle, along with the law’s delays, to achieve this outcome. Putting aside any dubiety of the steadfast refusal of defendants to pay the costs of..
Online Published Date:
01 August 2002
Appeared in issue:
145 - 01 August 2002