11 March 1994
Times Law Reports
Commercial Court of the Queen's Bench Division
Lloyd's Litigation: Case management
Lloyd's - litigation - possibility of insufficient
funds
Possibility of insufficient funds
It was necessary to impress on the parties to the
Lloyd's litigation that there was a distinct possibility, even if the claims
were sound in law, that there might be insufficient money to satisfy them all.
Mr Justice Cresswell so stated in the Commercial Court
of the Queen's Bench Division on March 4 when giving a statement in open court
following the review of the Lloyd's litigation between February 21 and 24.
MR JUSTICE CRESSWELLsaid that the Commercial Court
would continue to meet the considerable challenge of the Lloyd's litigation
while maintaining an appropriate balance between the demands of that litigation
and the demands of other litigants bringing domestic and international
commercial disputes to the court.
The court wished, however, to emphasise the heavy
responsibility on all solicitors and barristers concerned, to assist the court
to ensure that cases were conducted efficiently in accordance with best
Commercial Court practice, costs to the parties were contained and unnecessary
delay was avoided.
The Lloyd's litigation could be divided into the
following categories:
LMX cases; long tail cases (run-off contract cases and
reinsurance to close cases); personal stop loss cases; portfolio selection
cases; central fund litigation; and other cases.
Case management techniques would be addressed to the
particular categories of case referred to above.
The court had already identified and decided a number
of preliminary issues which would assist in resolving issues of principle
common to one or more categories of case. The court would continue to look for
further appropriate preliminary issues.
The court would continue to select from cases in a
particular category, lead or pilot cases for trial as to liability and
principles relating to quantum in the hope that decisions in those cases might
provide broad guidance in relation to other cases in the same category. Quantum
would generally be tried separately.
A liaison committee had been set up to facilitate
distribution of information to parties involved in the Lloyd's litigation.