Attempt to force Lloyd’s to pay up in London court scuppered
Ralph Janvey, the US receiver for Allen Stanford’s assets, blocked an attempt by Stanford to access his Lloyd’s D&O insurance in the London Chancery Court, Bloomberg reports.
Janvey told a Dallas judge Stanford was trying “a blatant attempt to end run this court” by asking the UK court to order the insurer to pay, over Janvey’s objections. US District Judge David Godbey yesterday ordered Stanford to withdraw his petition from the London court.
“It appears that Stanford is purporting to seek relief before another tribunal relating to the policies,” Godbey wrote in an order posted on his court’s Web site. “Such actions by Stanford both violate the terms of this court’s prior orders, as well as threaten to interfere with this court’s jurisdiction over the policies.”
Stanford has no funds to pay lawyers
Janvey has been fighting Stanford’s efforts to unlock frozen assets or access his Lloyd’s liability insurance to hire lawyers to defend himself.
“The court’s order is entirely appropriate,” Janvey said yesterday in a statement issued by his spokeswoman, Kristie Blumenschein. “It is very unfortunate that Mr. Stanford and his attorneys continue to engage in conduct which needlessly increases the costs of litigation to the receivership.”
Janvey filed copies of sworn statements that Stanford’s lawyers submitted to the UK court, seeking an emergency hearing in London to force the receiver to stop interfering with payment by Lloyd’s of fees to Stanford’s lawyers from the insurance. Janvey claims the bulk of the policy coverage should be reserved for his use to defend Stanford’s companies against claims.
Lloyd’s underwriters don’t want to pay
British lawyer Simon Peter Kamstra told the UK court that the SEC and the Serious Fraud Office have no objection to Stanford obtaining legal funds through the Lloyd’s policy.
Some Lloyd’s underwriters joined Janvey’s request to block Stanford’s attempt to obtain insurance coverage, according to documents filed in federal court in Dallas.
Stanford has a fight
Stanford is recovering from a Sept. 24 fight with another inmate that left him with a concussion, two black eyes and a broken nose, said Kent Schaffer, Stanford’s criminal-defence lawyer.
“He was beaten up,” Schaffer said. “I don’t know what the circumstances are that led to the fight or why they kept him in the hospital until Sunday morning.”