Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

US ruling could be windfall for Lloyd's

Steve Boggan
Thursday 18 August 1994 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A FEDERAL court ruling in the United States may result in savings of hundreds of millions of pounds for the beleaguered Lloyd's insurance market.

The ruling, dealing with a dollars 1.3b ( pounds 830m) settlement of around 100,000 claims from people suffering from asbestos-related illnesses, is the first to limit compensation in an attempt to end expensive and time-consuming litigation.

Under the ruling handed down by Federal Court Judge Lowell A Reed in Philadelphia, sufferers of mesothelioma, a disease of the lung-lining, will be awarded sums ranging from dollars 20,000 ( pounds 12,500) to dollars 200,000 ( pounds 125,000), with an average payout of between dollars 37,000 and dollars 60,000. Sufferers of lung cancer will receive average payments of between dollars 19,000 and dollars 30,000 to a maximum of dollars 86,000, while victims of other cancers will receive up to dollars 30,000.

Extraordinary claims from around 3 per cent of severe sufferers will range up to dollars 300,000.

The ruling was handed down after a deal was struck by lawyers representing victims and the Center for Claims Resolution (CCR), an asbestos industry conciliation body representing 20 firms, including T&N, formerly Turner and Newell, Britain's largest producer of the material.

Although Lloyd's exposure from T&N claims was described by the market last night as 'minimal', the ruling could be significant because it sets a precedent for the capping of claims. Tom Benyon, director of the Society of Names, described it as good news and said it meant Lloyd's could finally 'get lucky' in other cases.

In his judgment, handed down on Tuesday, Judge Reed said that the system had demonstrated that the lawyers were well paid for their services but the victims were not receiving 'speedy and reasonable inexpensive resolution of the claims'. Some lawyers are already planning to appeal against the capping of awards and Lloyd's itself was viewing the deal cautiously. A further 200,000 claims are outstanding.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in