Legal judgement update

RNS Number : 9925J

Randall & Quilter Inv Hldgs PLC

11 December 2008

Randall & Quilter Investment Holdings Plc ('R&Q')

English Commercial Court Judgment in favour of

Cavell USA Inc. and Ken Randall v Seaton & Stonewall

The English Commercial Court has today issued judgement in the trial of preliminary issues between R&Q affiliate Cavell USA, R&Q's Chairman, Ken Randall, and Seaton Insurance Company and Stonewall Insurance Company, US insurers in run-off.

Between 1999 and 2006 Cavell USA was the manager of the run-offs of Seaton and Stonewall. By February 2006, disputes between Cavell USA and the private equity owners of Seaton and Stonewall, Greenwich Street Capital Partners LP/Dukes Place Holdings LP (Greenwich), resulted in an agreement being drawn up to allow Cavell USA to withdraw. In exchange, R&Q received a release of all claims, with the exception of fraud claims which were specifically carved out of the release.

The English court today concluded that Seaton and Stonewall breached the February 2006 agreement by bringing New York court proceedings alleging fraud against Cavell USA and Mr Randall, in August 2007. The court concluded that the settlement agreement provided for the English court to have exclusive jurisdiction over all disputes arising out the agreement.

Following this decision, Cavell USA and Mr Randall will be free to pursue their substantial claim for damages, incurred in defending the proceedings wrongly brought in the New York court before they were struck out by that court in May 2008, and in contesting the subsequent appeal against that decision in New York.