In Mutual Holdings (Bermuda) Ltd and others v Hendricks and
others [2013] UKPC 13, the Privy Council determined that the
Court of Appeal of Bermuda was unjustified in making a finding of
fraud and overturning the decision of the trial judge.
Background
The respondents, Mr and Mrs Hendricks, owned and controlled an
insurance broker, AMPAT, that established an insurance product
called 'Roofers' Advantage' which covered roofing
contractors against workers' compensation, automobile and
general liability.
Between 1997 and 2001, the Hendricks and AMPAT participated in a
packaged 'rent-a-captive' scheme devised and managed by the
MRM Group. The case at first instance concerned negotiations that
took place in the year 2000 for the renewal of the programme for a
fourth year. In 2002, two former employees of the MRM Group, Mr
Bossard and Mr Agnew, approached the Hendricks and AMPAT and
alleged that the fourth year renewal had been procured by fraud.
Both former employees
