Liquidators secure €550k settlement

The High Court has approved a €550,000 settlement of a legal action by the liquidators of stockbroking firm Bloxham over alleged underinsuring of the firm.

The liquidators had claimed some €15m damages in their proceedings against the firm’s former insurance broker, Roberston Low, which had strongly disputed any liability and argued the firm understood the cover it had at all times and its consistent concern related to insurance had been the price of it.

The hearing opened last week but the sides agreed to attempt mediation on the suggestion of the president of the High Court, Mr Justice Nicholas Kearns.

Although mediation did not result in agreement and the case resumed yesterday, the sides continued to engage and the judge was told they had agreed to a settlement.

Because the liquidators required court approval before they could settle the case, they then asked the judge to approve the settlement of €550,000, plus costs.

Seeking that approval, Lyndon MacCann SC, for the liquidators, accepted they would have had difficulties proving their case in light of some of the evidence and documents relating to insurance.

This included an email in which his side appeared to acknowledge an insurance condition that was disputed in the proceedings, counsel outlined. A witness for his side had said that should have put him on inquiry.

Mr Justice Kearns said the case was listed for three weeks and was “not without significant risk” from the viewpoint of the liquidators. In all the circumstances, he was happy to approve the settlement.