LM-2024-000252 - [2025] EWHC 2704 (Comm)

On the Defence Costs Erosion Issue, I hold that the £4 million excess applicable under the Reinsurance Policies is eroded by indemnity payments only.

On the Claims Co-operation Clause Issue, I hold that the clause did not annul, modify or circumscribe the operation and effect of the Follow the Settlements Clause and that, subject to my determination of the Proper and Businesslike Steps Issue, the Reinsurers were bound to follow the TTSA.

On the Proper and Businesslike Steps Issue, I hold that Equitas has failed to show that there was a failure to take all proper and businesslike steps.

On the Interest Issue, I hold that RSA is entitled to simple interest at the rate of 2% above the Bank of England base rate from the date of each respective loss.

I shall adjourn consideration of all consequential matters, including the precise terms of the order giving effect to the foregoing decisions, to a further hearing as proposed by counsel.