Jurisdiction(s):
United Kingdom

Discovery Land v Axis: Court of Appeal (England and Wales) upholds PI cover for Jirehouse fraud; no condonation by colleague; aggregation defence fails

Published on: 17 January 2024

Published by a Law360 reporter

Legal News

Article summary

A Court of Appeal bench unanimously dismissed Axis Specialty Europe SE’s attempt to overturn a decision requiring it to indemnify Discovery Land Co LLC under Jirehouse Partners LLP’s professional indemnity policy, after a firm partner misapplied funds set aside for the purchase and redevelopment of Taymouth Castle in the Scottish Highlands. Axis contended it could deny indemnity, firmly asserting that Jirehouse partner Vieoence Prentice knew fellow partner Stephen Jones was misusing the money at issue. The three-judge panel ultimately held that Prentice had not sanctioned the misconduct at all. In April 2023, High Court Judge Robin Knowles found against Axis, plainly stating he could not conclude Prentice appreciated what Jones was doing. Judge Knowles determined that had Prentice discovered Jones’s wrongdoing earlier, he would have quit before March 2019, when the scheme emerged in full and became undeniable.

Jones defrauded Discovery Land. In 2018, the developer transferred US$14m to a client account at Jones’s firm, then a further US$9.3m to close the transaction, on the assurance from Jirehouse that the second remittance would be repaid two days later, according to Knowles’s detailed judgment. In the appeal judgment, Justice Geraldine Andrews expressly recognised that Prentice had lied to Jirehouse’s...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...