Current Law Cases
Scope |
contract; offer and acceptance; Lloyd's names
attaching conditions to settlement offer; no acceptance of counter offer |
Case |
Jones v Society of Lloyd's |
Court |
(Ch D) Chancery Division |
Judgment |
December 16, 1999 |
Judges |
Rattee, J.. |
Legislation |
Insolvency Rules 1986 (SI 1986 1925) r.6.5(4) |
Reported |
|
Reference |
Times, February 2, 2000 |
Abstract |
J and S, Lloyd's Names, had made agreements with L to settle
their liabilities of GBP 302,963 and GBP 187,228, respectively, under the
terms of the 1996 settlement agreement. J agreed to pay a single sum of GBP
15,000, with the remainder paid by way of a structured repayment plan, but
failed to make the initial payment on time and L presented him with a
statutory demand for the full gross sum as shown in his finality statement,
without debt credit deductions, as provided for in the settlement agreement.
S agreed to pay in cash, but upon failing to do so received a statutory
demand for payment in full without deductions. J and S applied for the
statutory demands to be set aside, arguing that the difference between the
sums originally agreed and the sums now demanded amounted to an unenforceable
penalty. Held, dismissing the applications, that the
difference between the amounts shown on the finality statements and the sums
net of credits originally agreed did not amount to an unenforceable penalty.
The right to receive that amount was a contractual right already existing
before the new settlements were agreed and therefore could not be regarded as
a penalty for failure to meet the terms of the agreement. |
Subject |
Insurance |
Keywords |
Debts, Lloyds Names, Statutory demands |
Counsel |
For J: David Oliver Q.C. and Richard Morgan.
For S: Catherine Mackenzie Smith. For L: Edward Bannister Q.C. and Lexa
Hilliard. |
Solicitors |
For J: In person. For L: Solicitor Society of Lloyd's |
Transcript |
1998-SD-688, 1998-SD-9580 |
Joined cases |
Standen v Society of Lloyd's |