Ruling puts insurers in limbo

A House of Lords ruling has thrown into question the ability ofinsurers to make settlements in cases involving accountancy firms andcompany directors.

Law firm Reynolds Porter Chamberlain (RPC) said the decision in Cape &Dalgleish v Fitzgerald now means that if a director or professional firmsettles a claim for fraud or negligence made against them, he or it canstill be sued by co-defendants who are seeking to share liability for anydamages for which they may be found liable.

The decision

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