Lloyd's v. Jaffray and Counterclaim
Decision of Justice Cresswell
Justice Cresswell ruled in favor of Lloyd's in Lloyd's v Jaffray and Jaffray's counterclaim of fraud. Although the result is not undexpected, it is regrettable that the British Names were not able to prevail. Because of the 1982 Lloyd's Act of Parliament, however, Lloyd's enjoys special immunities in the English courts. These immunities significantly narrowed the standard of review applied by the judge in Jaffray. Consequently "bad faith" was the only act that would have constituted fraud in Jaffray, and the court concluded that this higher threshold was not crossed by Lloyd's. In stark contrast to American courts, the Names did not have the option to have the case heard by a jury. Nor did the court allow Names' counsel to compel witnesses to submit to cross-examination.
The following links are to large sections of the decision, in the same format as it was downloaded from "www.courtservice.gov.uk." The complete decision is over 250 pages long.
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1996 FOLIO 2032
IN THE HIGH COURT OF JUSTICE
Royal Courts of Justice,
THE HON. MR JUSTICE CRESSWELL
Mr. Charles ALDOUS Q.C., Mr. Richard JACOBS Q.C., Mr. David FOXTON and Mr. Stephen HOUSEMAN (instructed by Freshfields Bruckhaus Deringer) for the Society of Lloyd's.
Mr. Simon GOLDBLATT Q.C. and Mr. Vincent NELSON (instructed by More Fisher Brown) for certain members of the United Names Organisation.
Mr. Patrick TALBOT Q.C., Mr. David DRAKE, Mr. David CRAIG and Mr. Giles RICHARDSON (instructed by Grower Freeman and Goldberg) for other Names.
Sir William Otho JAFFRAY Bt. and other Names appeared in person.
I direct that pursuant to RSC Order 68 r. 1 no official shorthand note shall be taken of this judgment and that copies of this version as handed down may be treated as authentic.
The Hon. Mr. Justice Cresswell
CONTENTS, TABLES AND APPENDICES
8. Lloyd's Case
15. The Witnesses
18. Open Years
19. The Years in Question. 1978 to 1988
20. 1989 and Subsequent Years
21. Developments in Relation to Capital Structure