In the judgment, which was handed down late on Friday, a London Commercial Court judge found that the company and one of its employees had been covered by the professional indemnity insurer named in the action “on all the substantive coverage points” of an insurance policy at issue in the case, “in respect of liability for the wrongful acts alleged” to have occurred at Rathbone Trust Company Jersey (RTCJ), according to a Rathbone statement issued this morning.
However, the statement – posted on the FTSE 250-listed company’s website – added, the judge “also ruled that the insurers should have a right of subrogation whereby they could, upon payment of any sums to the employee, take over any rights of action which the employee might have against Rathbones” with respect to an indemnity granted to him by Rathbones and RTCJ.
RTCJ is now known as Hawksford Trust Company Jersey Ltd, following the 2008 sale.
“Rathbones is reviewing the judgment and considering its potential implications with its counsel and other advisers, and will be deciding in the near future whether or not to appeal against certain aspects of the judgment,” the Rathbone statement added.
“A further announcement will be made in due course.”
The professional indemnity company involved in the case was not mentioned in the Rathbones statement.
Three trustees
The case came to light at the beginning of this year, when it emerged that a claim had been filed against three trustees of the former Rathbone Trust Company trust, including one formerly employed by Rathbones, because one of the assets in the trust had not performed as well as expected.
Rathbones did not choose or manage any of the investments, though it estimated that legal fees linked to the case could cost it £100,000 a month until the end of the year.
