EQUITAS LTD AND ANOTHER V SANDE INVESTMENTS LTD AND OTHERS

[2021] EWHC 631 (Comm), Queen’s Bench Division, Commercial Court, Leigh-Ann Mulcahy QC, sitting as a Deputy High Court Judge, 19 March 2021

Reinsurance – Lloyd’s brokers – Sub-agents appointed by brokers collecting reinsurance recoveries due to Lloyd’s syndicates – Liability of sub-agents to Lloyd’s syndicates – Status of sub-agents – Implied contract of retainer – Duty of care in tort – Fiduciary duties – Unjust enrichment – Limitation of actions – Limitation Act 1980, sections 2, 5, 21 and 32

The defendants were appointed by brokers to collect reinsurance recoveries for two Lloyd’s syndicates for the years 1998 to 2004. The rights of the syndicates were transferred to Equitas in 2009. The sub-agents were unable to account for the whereabouts of the sums, due to poor record-keeping and the present action was commenced by Equitas as assignee of the syndicates against the sub-agents in 2019 for payment of the recoveries plus lost investment income.