Supreme Court Orders £8.2 Million Payment from Former Insurance CEO.

The Supreme Court of Gibraltar has delivered a significant result for the liquidators of a failed insurance company. Over two hearings on 5 and 6 November 2026, the Court ordered the former CEO of a collapsed motor insurer to pay £7,785,000 in interim damages and £500,000 towards legal costs. 

Background

The case concerns Green Realisations 123 Limited, formerly MCE Insurance Company Limited, a Gibraltar motor insurer that is now in liquidation. The Joint Liquidators, appointed to wind up the company and recover money for its creditors, are pursuing claims against its former director, Julian Edwards. It is alleged that Mr Edwards kept the company writing loss-making policies, misstated the company's assets, and allowed the company to continue trading whilst insolvent. 

This latest result follows an earlier judgment of December 2025 in the liquidators' favour, where judgment in default was obtained against Mr Edwards, with the Court finding him liable after he failed to defend the claim properly. In March 2026, the Court refused his application to set that judgment aside.

The Court's Decisions

Interim damages: £7,785,000

With liability already established, the Joint Liquidators asked the Court to order part of the damages to be paid now, ahead of the final assessment. The Court will only order a cautious proportion of the likely final award.

Backed by expert evidence, the liquidators put the company's loss at no less than £15.5 million. Mr Edwards called no expert of his own and instead proposed £7,785,000, a figure which the Joint Liquidators did not oppose, and for which they were praised by the Judge for their pragmatism. The Court made the order, describing the sum as "well below" any cautious estimate of the final judgment and dismissing Mr Edwards' criticisms of the company's experts.

Payment on account of costs: £500,000

The Court also ordered an advance on the Joint Liquidators' legal costs, so that they need not wait for the lengthy process of having those costs formally assessed. Focusing on legal fees of over £1 million alone, the Court was satisfied that at least half would be recovered and ordered £500,000 to be paid within 28 days. 

It described the substantial costs of this complex insurance insolvency as "unsurprising" and rejected any suggestion that the Joint Liquidators had avoided settlement, pointing to their previous efforts to resolve matters. Mr Edwards must also pay the costs of both applications. 

Key Takeaways

1. A default judgment carries real weight: Once liability is fixed, a claimant can seek substantial sums before the final hearing.
2. Expert evidence matters: Criticisms of expert reports, without contrary expert evidence, carried little weight.
3. Lack of means is no shield: A defendant's purported inability to pay will not usually prevent an order for costs on account.

The Claimant was represented by Daniel Feetham KC, Darren Martinez and Nikhil Nagrani of Hassans International Law Firm. 

Should you wish to discuss any insolvency matters, please feel free to reach out to our Insolvency Litigation Team:

Daniel Feetham KC, Partner

Darren Martinez, Partner

Nikhil Nagrani, Associate

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