Equitable wins right to sue directors

Daytona · 2003-10-17T11:34:56+00:00

Equitable wins right to sue directors Equitable Life has won the right to sue nine former non-executive directors for £3.3bn. Equitable claims the directors failed to protect the company's policyholders from huge losses. The directors deny that they are to blame for the financial crisis which hit Equitable Life in the late 1990s. Mr Justice Langley, a High Court judge, was urged by the counsel for the non-executive directors to strike out the claim as "hopeless" and a waste of time and money before it got to trial. However, the judge has decided that the non-executive directors have a case to answer. The non-executive directors will join six former directors of the Equitable in court. The case is expected to set a precedent for future cases being brought against non-executive directors, and could discourage people from taking on such posts at all. Blame Commenting on the decision, Vanni Treves, Chairman of Equitable Life said: "We are pleased, but not surprised, that Mr Justice Langley agrees that this case should proceed to trial. "The Board believes there is a strong claim against the former directors and in the interests of policyholders it has a duty to proceed." FORMER NON-EXECUTIVE DIRECTORS IN COURT Peter Davis - first director general of National Lottery David Price - of investment bank Warburgs John Sclater - board member of Foreign & Colonial Investment Trust Peter Sedgwick - ex-Schroders Bank chief Jonathan Taylor - former chief of food wholesaler Booker Alan Tritton - commercial banker Peter Martin - former solicitor Jennie Page - former Millennium Dome boss David Wilson - chairman of housebuilder Wilson Bowden Groups representing hard-pressed policyholders, who have seen the size of their savings slashed by the insurer expressed relief at the decision. "It is good that the directors will have to answer for what we see as maladministration. The current Equitable board has promised they will only pursue the case if it makes...

Oct 17, 2003 40 Replies

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Rhoy the Bhoy 22 years ago

When did that happen ?

everyone has >behaved in the same way,

Not very close.

Only prima facie. In this case, if the profession's own written standards were being ignored, the prima facie position is debatable.

(uk.legal re-added)

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Equitable wins right to sue directors

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