11th Nov 2013 14:07
LONDON (Alliance News) - Rathbone Brothers PLC Monday said it has won a key legal case against its professional indemnity insurers, but that it is considering whether to appeal against certain aspects of the court's judgement.
The claim was filed in July of last year, as Rathbones sought to confirm insurance cover provided by the insurers of the excess layer of its professional indemnity policy.
At the time, Rathbones said it was protecting its interests in the context of a claim against a former director of Rathbone Trust Company Jersey Limited, which Rathbones owned between March 2000 and October 2008. It is now known as Hawksford Trust Company Jersey Limited.
The judgement was handed down late on Friday, following a trial in the Commercial Court in London, in respect of its proceedings against the providers of the excess layer of its professional indemnity insurance.
"In those proceedings, which were brought against the insurers by Rathbones and the employee in question, the judge (Mr 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," Rathbones said in a statement.
"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 added.
Rathbones, which provides personalised investment and wealth management services for private clients, charities and trustees, said it is reviewing the judgement and considering its potential implications and will inform the market in due course as to whether or not it will appeal against certain aspects of the judgement.
Rathbones shares were Monday quoted at 1,596.00 pence, up 2.6%.
By Samuel Agini; [email protected]; @samuelagini
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