VOLUME 6

VOLUME 6

The pursuers' entitlement to recover enhanced settlement amounts under the indemnities depends on whether the settlements were reasonable in light of the risk of Texas jurisdiction and higher damages, and whether the indemnities, properly construed, cover such losses. The court finds that there was a serious risk of Texas jurisdiction and higher damages, making the settlements reasonable. However, the scope of the indemnities and the classification of losses as 'indirect' may limit recovery in certain cases.

Parties
Pursuer: Elf Caledonia Ltd; Defender: London Bridge Engineering Ltd & Ors
Jurisdiction
Scotland
Procedural Posture
Commercial Indemnity/reparation / Judgment on Quantification of Loss and Jurisdictional Issues
Outcome
Partial success for pursuers, subject to construction of indemnities and classification of losses.
Legal Topics
Indemnity, Quantification of Damages, Jurisdiction (texas/scotland), Forum Non Conveniens, Personal Injury, Wrongful Death, Choice of Law
Commercial Law Tort Law Conflict of Laws Indemnity Quantification of Damages Jurisdiction (texas/scotland) Forum Non Conveniens Personal Injury +2 more

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Parties

Elf Caledonia Ltd

Pursuer

London Bridge Engineering Ltd & Ors

Defender

Procedural Posture

Commercial Indemnity/reparation / Judgment on Quantification of Loss and Jurisdictional Issues

Legal Issues

  1. 1 Whether the pursuers are entitled to recover enhanced settlement amounts under indemnities, or only Scottish levels of damages
  2. 2 Whether settlements paid were reasonable and covered by indemnities
  3. 3 Whether Texas courts would have accepted jurisdiction over the claims

Ratio Decidendi

The pursuers' entitlement to recover enhanced settlement amounts under the indemnities depends on whether the settlements were reasonable in light of the risk of Texas jurisdiction and higher damages, and whether the indemnities, properly construed, cover such losses. The court finds that there was a serious risk of Texas jurisdiction and higher damages, making the settlements reasonable. However, the scope of the indemnities and the classification of losses as 'indirect' may limit recovery in certain cases.

Court Disposition

Partial success for pursuers, subject to construction of indemnities and classification of losses.

Orders

  • Pursuers entitled to recover reasonable settlement amounts under indemnities where covered and not classified as 'indirect' loss, subject to further determination in individual cases.
  • Quantum of damages to be computed based on reasonableness and risk of Texas jurisdiction.