EMAG press release 9 December 2005

EMAG challenge Vanni Treves: Publish, or be damned.

Many Equitable Life policyholders say that they were NOT consulted about litigating and point out that they relied upon their heavy-hitting lawyer chairman’s assurances that the endeavour would be cost effective. Now those policyholders are asking if Treves will be suing Herbert Smith.

Members of Equitable Life reacted angrily to the contentious new letter sent out by the board (2 December) that seeks to explain away its failed litigation. Vanni Treves had for years maintained that the Society received advice from Herbert Smith and Counsel’s opinion that the board had a duty to proceed in what has resulted in four wasted years and a monumental £45m legal bill to policyholders.

At Equitable’s last AGM (18 May) Arthur White, a with-profits annuitants, pressed Vanni Treves to publish that crucial written advice in full, which he pointed out was paid for and belongs to the members. Mr Treves refused, pleading “priviledge”, and he mocked Mr White. Sadly, Arthur White died in July. Today, EMAG renewed the late Mr White’s call, stating that since litigation has ended there can no longer be any valid reason to withhold.

Concerns about the ill-judged litigation led EMAG’s board to write to the FSA in November, calling for an urgent meeting to discuss stewardship and protection of policyholders in the event of the rumoured break-up of the Society. Doubts about Vanni Treves’ judgement and stewardship were articulated this week in a searing comment column by Andreas Whittam-Smith and in letters from two of the ex-defendants, Chris Headdon and Peter Davis (see attached).

Paul Braithwaite, EMAG’s general secretary said:

“The public relied on repeated reassurances in what now appears to have been a “dodgy dossier”. It’s time for Mr Treves to justify his going to war by publishing the legal advice – or be damned.”