Battle resumes between E&Y and Equitable
Big Four firm, Ernst & Young, will re-start its High Court battle with beleaguered life assurance firm, Equitable Life, on Monday.
Link: E&Y expects latest Equitable claim to fail
E&Y will be keen to put the long-running legal wrangle behind it, after being dragged through the courts several times already. This time three separate appeals will be mounted.
Mark Hapgood, QC for Ernst & Young, will appeal Justice Langley’s decision to allow Equitable Life to pursue a bonus declaration claim worth up to £500m.Speaking at the time of Langley’s decision, E&Y partner Victoria Cochrane, said: ‘We continue to be confident that the bonus claim is ill-conceived and bound to fail at trial’.
Equitable Life, meanwhile, will appeal the judges’ decision to strike out the lost sale claim, originally worth £2.9bn, as well as reduce the value of the bonus declaration claim from £2.6bn to £500m.
The latter accuses E&Y of negligence, alleging that if the firm had advised Equitable correctly it would not have issued such generous bonuses to policyholders.
Most commentators believe Ernst & Young will offer to settle the bonus declaration claim, should its appeal to have it struck out fail.