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Lloyd's Names

Note: Alleging fraud, many investors in Lloyd's insurance syndicates sought to enjoin drawings on LCs posted to secure their obligations. To resolve its dispute with the Names throughout the world, Lloyd's created a Reconstruction and Renewal Plan under which it initiated reinsurance plans with a group of companies known as "Equitas". The Names would then make contributions to the cash calls that Lloyd's made. The Canadian Names that did not agree to the settlement continued their action against Lloyd's in England.

To compel payment into the Equitas funds, Lloyd's initiated an action in an English court against these Names, contending that they still had a duty to pay the Equitas premiums. The English court ruled in favor of Lloyd's. Lloyd's then sued in a Canadian court to enforce the English judgment. The issue was whether the Canadian court would honor the English court's ruling. The court concluded that the English court's ruling was enforceable in Canada because enforcement of the decision was not "contrary to natural justice."

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The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of ICC or the other partners in DC-PRO.