|  | | 2005 News and Press Releases | | |
SETTLEMENT NEWS:
Lloyd's Ordered To Pay $1.9 Million Plus Interest
Asher Hawkins
The Legal Intelligencer. March 8, 2005
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EXCERPT: Lloyd's of London must pay roughly $1.9 million plus interest as its contribution to a $7 million securities fraud class action settlement entered into by an assets management company to which Lloyd's had provided secondary excess liability coverage, a Philadelphia judge has ruled. Judge Albert W. Sheppard Jr.'s decision in Resource America Inc. v. Certain Underwriting Members of Lloyd's comes three months after he had granted summary judgment as to RAI's breach of contract claim against Lloyd's. The matter has been handled in the Philadelphia Commerce Case Management Program. "As in-house counsel for [RAI] has attested, [RAI's] primary and first excess carriers paid $5,085,005 toward the [class action] settlement, but at that point their coverage was exhausted," Sheppard wrote in an opinion dated Feb. 25. "$7 million minus $5,085,005 is $1,914,995. Therefore, the court finds that [RAI has] proffered sufficient proof that they are entitled to [that sum] from Lloyd's." Sheppard further ordered that Lloyd's must pay RAI pre-judgment interest at a rate of 6 percent per year from November 2001, when the breach of contract occurred, to the date of the opinion. RAI is also entitled to post-judgment interest at the same rate from the filing date of the opinion to the date the judgment is paid, he said. The class action against RAI, which was brought in the U.S. District Court for the Eastern District of Pennsylvania, was based on allegedly improper accounting practices, according to a November 2004 opinion in the matter filed by Sheppard. |
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