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Chancery Division [1998] 1 Lloyd's Rep 223 HEARING-DATES: 21 November 1997 21 November 1997 NOTEBY: Vice Chancellor, JM DYSON, Chief Chancery Master. TEXT: Estates of Deceased Lloyd's Names (i) Personal representatives who wish to apply to the Court for leave to distribute the estate of a deceased Lloyd's Name following the decision of Mr Justice Lindsay in re Yorke Stone v Chataway (1997) TLR 451 (The Times, Aug 11, 1997) may; until further notice and if appropriate in the particular estate, adopt the following procedure. (ii) The procedure will be appropriate where: (a) all liabilities of the estate in respect of syndicates of which the Name was a member have been reinsured (whether directly or indirectly) into the Equitas group and (b) the only reason for delaying distribution of the estate is the possibility of personal liability to Lloyd's creditors. (iii) In these circumstances personal representatives may apply by ex parte originating summons in form RSC, Appendix A, Form 11 headed "In the Matter of the Estate of [] deceased (a Lloyd's estate) and In the Matter of the Practice Direction dated 21st November 1997" for leave to distribute the estate on the footing that no or no further provision need be made for Lloyd's creditors. The originating summons should make provision for a hearing date, but it will not be necessary for the applicant to be present or represented at this first hearing. (iv) The originating summons should be supported by an affidavit substantially in the form annexed to this Practice Direction adapted as necessary to the particular circumstances and accompanied by draft minutes of the desired order substantially in the form annexed. (v) The application will be considered in the first instance by the Master (or outside London, District Judge) who, if satisfied that the papers are in order and that the relief sought should be granted, may make the order without requiring the attendance of the applicants and send it to them. If not so satisfied, the Master or District Judge may give directions for the further disposal of the application, including the joinder of contingent creditors as defendants. (vi) The procedure described in this Practice Direction at present applies only to estates whose liabilities have been reinsured into Equitas. Extensions to the procedure to deal with other cases may be considered in due course. APPENDIX [Draft Affidavit] [Heading in action] 1. We are the personal representatives of [] ("the Deceased") who died on [] having obtained a [grant of probate/letters of administration] from the [] Registry on []. [An office copy of] the grant [and will] are now produced and shown to me marked "1". The matters to which we depose are within our own knowledge obtained in the course of so acting. 2. The Deceased was before his death an underwriting member of Lloyd's of London whose underwriting activities are treated by Lloyd's as having ceased on []. We are now in a position to complete the administration of the estate and to distribute it to the beneficiaries but we do not wish to do so without the authority of the Court because of the existence of possible contingent claims against the estate arising out of the Deceased's underwriting activities for which we might be liable. We believe that the interests of any such claimant are reasonably secured by virtue of the fact that all the Lloyd's syndicates in which the Deceased participated have been closed ultimately by reinsurance into the Equitas group. Equitas remains licensed to conduct insurance business and we there have no reason to doubt its solvency. A copy of the latest report and accounts of Equitas Holdings Limited is now produced and shown to me marked "2". 3. As appears from the Schedule now produced and shown to us marked "3" in which we summarize the assets and liabilities of the estate, we have paid all the debts of the deceased known to us (apart from the costs and expenses associated with the final administration of the estate) and we have also advertised for and dealt with claimants in accordance with s 27 of the Trustees Act 1925 and satisfied all claims received in response to the advertisement [or as the case may be]. 4. We know of no special reason or circumstance which might give rise to doubt whether Equitas can reasonably be regarded as adequate provision for potential claims against the estate and we ask for leave to distribute accordingly. [Draft Minutes of Order] [Heading as in action] UPON THE APPLICATION of the Plaintiffs by Originating Summons AND UPON READING the documents recorded on the Court file as having been read IT IS ORDERED THAT: 1. the Plaintiffs as the personal representative of the estate ("the Estate") of the above named deceased ("the Deceased") are at liberty to distribute the Estate without making any retention or further provision in respect of any contract of insurance or reinsurance underwritten by the Deceased in the course of his business as an underwriting member of Lloyd's of London. 2. the costs of the Plaintiffs of this application be taxed if not agreed by or on behalf of [the residuary beneficiaries] on the indemnity basis and raised and paid or retained out of the Estate in due course of administration. |