Current Law Cases
|
Scope |
Lloyd's; obligation to pay into Central Fund;
Fund operations as decision of an association of undertakings; arrangements
not competitive restriction between Member States |
|
Case |
Society of LloydÕs v Clementson (No.3) |
|
Court |
(QBD (Comm Ct)) Commercial Court |
|
Jurisdiction |
|
|
Judgment |
May 7, 1996 |
|
Judges |
Saville, J. |
|
Legislation |
Treaty of Rome 1957 Art.85 |
|
Reported |
[1997] L.R.L.R. 175; [1996] 5 Re L.R. 215;
[1996] C.L.C. 1590 |
|
Reference |
Times, May 14, 1996 |
|
Abstract |
C, a Name at Lloyd's, was obliged by his
agreement with Lloyd's to provide sums of money to the Central Fund. Lloyd's
sued him under the terms of that agreement. C contended that the arrangements
for the Central Fund and their by laws were contrary to the Treaty of Rome
1957 Art.85(2). Held, giving judgment for Lloyd's and
dismissing C's counterclaim that the conduct of insurance business fell
within Art.85 of the EC Treaty. Lloyd's was an association of undertakings
within Art.85 and its decisions as to the withdrawal of funds from the Central
Fund were "decisions of an association of undertakings" within
Art.85. The relevant markets were the worldwide marine, aviation and
reinsurance markets. The Central Fund arrangements had not had a direct or indirect
influence, whether actual or potential, on the pattern of trade between
Member States. The Central Fund arrangements did not have as their purpose
the restriction or distortion of competition between Member States. C's
losses were not caused by any of the matters of which he complained. |
|
Subject |
Insurance |
|
Keywords |
Fraud, Letters of credit |
|
Counsel |
For C: Jeremy Lever Q.C. and Richard Slowe.
For Lloyd's: Gordon Pollock Q.C., Paul Lasok Q.C. and Richard Jacobs |
|
Solicitors |
For C: SJ Berwin & Co. For Lloyd's: Freshfields |
|
Cases cited |
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