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Rathbones win courtroom battle but Jersey legal case rumbles on
by Dylan Lobo on Nov 11, 2013 at 08:17
Rathbone Brothers has won a courtroom battle relating to a Jersey legal claim filed against a former director of the firm, although the case could still rumble on.
The case is linked to a claim relating to the management of a Jersey trust. At the beginning of 2012 it was filed against a former director of Rathbone Trust Company Jersey (RTCJ), which Rathbones owned between March 2000 and October 2008.
In July 2012 Rathbones, headed by Andy Pomfret (pictured) issued proceedings to confirm that insurance cover on the excess layer of its civil liability, or professional indemnity policy, was in place and would protect the company’s interests in the event of the claim being upheld.
In a judgement handed down on 8 November following a trial in the Commercial Court in London, Justice Burton ruled in favour of Rathbones and the employee 'on all the substantive coverage points on the insurance policy, confirming that the 'employee was covered by the policy in respect of liability for the wrongful acts alleged in the Jersey proceedings'.
However, he also ruled that the insurers should have a right of subrogation whereby they could, upon payment of any sums to the employee, take over any rights of action which the employee might have against Rathbones pursuant to an indemnity granted to him by Rathbones and RTCJ.
Rathbones told the stockmarket it was 'reviewing' the judgement and 'considering its potential implications with its Counsel and other advisers and will be deciding in the near future whether or not to appeal against certain aspects of the judgment.'
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