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Exclusion for trading and personal debts in attorneys PI policy

08 June 2016 | General

The English Court of Appeal decided that the exception in an attorney’s professional indemnity policy against cover for trading or personal debts or breach of contract for goods or services supplied to the practice does not exclude the insurer’s liability for money owing to a legal expenses insurer for breaching their policy conditions.

Proximate cause – hacked computer of negligent employee

07 June 2016 | General

A US bank employee left her individual token in her computer and left the computer running at the end of a work day. Overnight two unauthorised wire transfers had been made to different banks in Poland and one of $485 000 could not be recovered.

Acceleration clauses and prescription

06 June 2016 | General

If a loan is repayable in instalments and includes an acceleration clause that if the debtor defaults on paying any instalment, the creditor is entitled on notice to terminate the loan agreement and claim the full balance outstanding, the debt ordinarily only prescribes three years after the date of the notice claiming the full outstanding balance.