Roby v. Corp. of Lloyd’s
United States Court of Appeals for the Second Circuit
996 F.2d 1353 (1993)
- Written by Mary Katherine Cunningham, JD
Facts
In the 1980s, certain investment vehicles attracted investors to Lloyd’s of London (Lloyd’s) (defendant), an insurance market similar to the New York Stock Exchange located in London. One type of investment vehicle known as syndicates used capital obtained from investors to finance insurance companies. Some of these investors who provided funds to underwrite insurance risk within these syndicates were “Names” in Lloyd’s. These “Roby Names” signed several agreements containing broad choice-of-law and choice-of-forum clauses. The agreements signed by the Roby Names also included a clause providing that the Roby Names and Lloyd’s agreed to the courts of England retaining exclusive jurisdiction over all disputes arising out of the Roby Names’ membership in Lloyd’s. One of the agreements also contained an arbitration clause providing that the parties could refer any dispute relating to the agreement to arbitration in London. During the late 1980s, many of these syndicates sustained substantial losses when insured parties sought amounts owed to them. In 1992, a large number of Roby Names who were U.S. residents (plaintiffs) filed suit against Lloyd’s claiming violations of U.S. securities laws and the Racketeer Influenced and Corrupt Organizations Act (RICO). The Roby Names did not assert common-law fraud claims or claims under English law. The district court held that the agreements required the Roby Names to submit their claims to arbitration in London or to the English courts. The Roby Names appealed to the Second Circuit, arguing the arbitration clauses and choice-of-law clauses in the agreements did not reach their U.S. statutory claims. The Roby Names also argued that the arbitration clauses and choice-of-law clauses in the agreements were unenforceable if these clauses did reach the Roby Names’ U.S. statutory claims. The Roby Names finally asserted anti-waiver provisions in U.S. securities law requires any arbitration agreement to comply with these laws.
Rule of Law
Issue
Holding and Reasoning (Meskill, C.J.)
What to do next…
Here's why 815,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.