Soc'y of Lloyd’s v. Reinhart

Society of Lloyd’s (Lloyd’s) (plaintiff), an English insurance regulatory authority, sought enforcement of money judgments rendered in England against United States-based insurance underwriters known as the New Mexico Names and the Utah Names (defendants). When the New Mexico Names and Utah Names became investors and underwriters for Lloyd’s in the late 1970s and 1980s, they signed an agreement to comply with the Parliamentary Acts, which required them to submit any disputes arising out of their investments to the English courts for the application of English law. A dispute arose about whether a reinsurance premium was due under a certain contract. When the New Mexico Names and Utah Names refused to pay the premium, Lloyd’s commenced an action against the Names in English court and ultimately obtained money judgments. Lloyd’s brought suit in the United States district courts to enforce the judgments against the New Mexico Names and the Utah Names, and it obtained summary judgment against each defendant. The Names appealed, with the Utah Names arguing that they did not have a full and fair trial in England because they were subject to unlawful contracts, were unable to assert certain affirmative defenses, and were prevented from discovering or presenting evidence to dispute the amount of liability. [Ed’s note: Although the court proceeded to analyze the New Mexico Names’ arguments, only the Utah Names’ arguments are discussed in the casebook excerpt.]