A new date has been set for £100m judgement in a long-running Isle of Man investor compensation case involving two of the largest life offices in the jurisdiction.
According to a report in Isle Man Today, the website of island news organisation Media Isle of Man, the claimants have now been given a new date for the handing down of the judgment – June 8, which will be the seventh date they have been given since the trial concluded.
The claimants, mainly British nationals and expats based across the world, say they were sold life assurance products which they were told were safe and low risk – but were based on investment funds which ultimately collapsed.
They argue that the companies misrepresented the products, and that they failed to carry out ‘some minimum standard of due diligence review’ on the underlying funds.
Both Friends Provident International and Utmost contest the claims.
The closing submissions in the compensation battle against Utmost (formerly Old Mutual /Quilter) and Friends Provident International (FPI) concluded in May 2024, following a seven-week trial in Douglas High Court, Isle of Man.
It is now 23 months on and acting deemster James Corbett KC has yet to hand down judgment.
While both FPI and Utmost did not comment further on the matter, it is understood that the delays in the proceedings are a cause of frustration and concern not just to the claimants but to all parties involved.
Health issues
The Isle of Man today report pointed that in an update issued in January, the claimants were told that judgment would be formally handed down on March 11. But a court spokesperson said: “The acting deemster has had health issues which have caused the further delay. We remain in close contact with him and are keeping the parties informed.
“We are currently awaiting his confirmation of a revised timetable and as soon as that comes through it will be communicated to the parties.”
The claimant committee for the group bringing the claim told Isle of Man Today that 16 claimants have passed away since the trial concluded in May 2024, out of the claimant group of 739.
Class Action
Another, larger class action against the same two insurance firms will the subject of a 10-week trial in March 2027. Some 1,600 claimants from some 40 countries have lodged claims. Three sets of proceedings are being case-managed together.
A case management hearing this week set dates for the disclosure of tens of thousands of documents relating to the case, spanning a period of 28 years.
Next year’s 10-week trial starting March 15, 2027 will involve 20 test cases and will be restricted to dealing with issues of liability, Acting Deemster Hodge Malek KC ruled.
If liability is established, a ‘phase two’ hearing would then be held on causation, loss and damages, the IOM today report concluded.
