Senior partner, John Gould, and senior associate, Michael Colledge acted for the Solicitors Regulation Authority (SRA) in the Supreme Court appeal of AIG Europe Limited (Appellant) v Woodman and others (Respondents).
The case arose out of 214 underlying claims by investors and beneficiaries to two trusts which were set up to hold security over land to be purchased at Peninsula Village, Turkey and at Al Johara Morocco.
The investors claimed against The International Law Partnership (ILP), a firm of solicitors, that the investment structure set up on behalf of ILP’s clients known as the Midas Group, resulted in ineffective security which resulted in losses to the investors. ILP subsequently went into liquidation and had no funds to meet the claims. Their professional indemnity insurers argued that all claims could be aggregated as ‘one claim’ and therefore refused to pay further sums beyond the £3 million limit of indemnity.
The SRA’s position was that the insurer’s interpretation of the aggregation clause was too broad and intervened as the trustee of the Compensation Fund, the discretionary fund of last resort for people who suffer loss because of a solicitor’s dishonesty or failure to account.
The appeal submissions on behalf of the SRA (as an intervener) were in support of the Court of Appeal Judgment which had adopted the interpretation of clause 2.5 of the SRA Minimum Terms and Conditions put forward by the SRA at the earlier hearing.
Judgment has been reserved.
Read the full details of the earlier hearing at the Court of Appeal.