EQUITABLE LIFE MEMBERS

Ernst and Young Court Judgement

LORD LANGLEY'S SUMMING UP CLAUSES IN THE ERNST & YOUNG CASE 10 February 2003

"128. In my judgement, Equitable should not be permitted to pursue the lost sale claims and the loss of chance of sales claims. I also think that the bonus declaration claims as pleaded and explained for the purposes of these applications can fairly be described as fanciful in approach and amount. There may be proper claims which could be advanced on this or a related basis but not, I think, those which are made, and I do not think it is right or consistent with the CPR (Court Procedure Rules?) that defendants such as E & Y should face claims of the magnitude of these bonus declaration claims which can be shown to have so many basic flaws.

129. Equitable should be given an opportunity albeit within a defined timescale to consider the bonus declaration claims and decide whether or not it wishes to present them in any way differently. In my judgement if they are to be pursued E & Y is entitled to have them presented with a rigour and reality which is presently lacking. If Equitable declines to accept that invitation, I will grant E & Y's application in respect of those claims also. In any event I will hear the parties on the terms of the order to be made and any anciliary matters after this judgement is handed down.:" (Confirmed in court as this Friday 14th Feb, 2003)