Chapter 8
Following the merger, Grenville and Black were in the driving seat on the board, backed by the nominee directors from Stirling. Facing them was Jim Ashby, alone and under siege in the day to day running of the company. It was only the threat of using his veto as majority shareholder that prevented the others from ramming through ‘reforms’ which Grenville said were essential if Plantation was to recover. In reality, they were to increase the speed of the company going broke.
As predicted by Black, the claims position steadily deteriorated. Some of the early advices which hadn’t looked bad at the outset, worsened in stages, in the way that a disease manifests itself in blemishes and later turns into sores.
Each claim was the fall-out from the high risk business taken on by Stirling. Plantation’s claims manager monitored the situation with alarm and reported the position each day to Jim Ashby and Grenville. While one openly despaired, the other secretly applauded. At one stage, it was estimated that if all of the worst claims were eventually found to be proved against Plantation, the company would have debts of several hundred million pounds to pay.
As the position degenerated, Grenville and Black were satisfied they would not have long to wait. Both had agreed that the way to encourage Plantation’s disintegration was by distancing themselves from the claims portfolio : Jim Ashby would have the sole responsibility of dealing with it. If any claim could not be resisted, the board could say that the managing director had handled the situation personally. If anything was amiss, it should be laid at his door and no-one else’s. In typical fashion, Jim Ashby insisted on battling each of the toxic claims with limited assistance from anyone else.
At a specially convened board meeting after the worst claims materialised, a row broke out between Ashby, Grenville and Black.
“Do you realise what each of these claims could do to Plantation if we’re liable for them ? What do you have to say about it ?” demanded Ashby senior of the others.
“You knew what you were getting yourself into when Stirling came on board,” shouted Black. “It’s a bit late to start complaining that you didn’t know what you were taking on. You knew all about it. You did your due diligence – and if you didn’t, well more fool you.”
“Anyway, Jim,” said Grenville, “Nigel has assured us that none of these claims are worth any powder and shot – they’re all a try on and the courts will soon see through them.”
“That’s not what the lawyers are saying. We’ve got a fight on our hands in every single one of them – and we’re very likely to lose – each and every one – hands down.”
“That can’t be right,” said Black. “They don’t know what they’re talking about. Ha – usual lawyers who know nothing about the way the market works. I suggest you go to a better law firm who understand reinsurance.”
“They’re a law firm your own company used all the time. Right. I’ve had enough of this. These claims and your entire set-up have brought us close to ruin and I’m not having it. There’s something not right here and I’m going to find out what it is. And I am going to get you, Black – and all the rest of your cohorts here around this table – because you’ve tried to trick me but it hasn’t worked. I can see what your game is and I’m going to put a stop to it. I’m going to expose you. I’ll bring in the DTI, the regulators, the Underwriting Association, the fraud squad, I’ll get them all onto you, right now. You’re nothing but a bunch of crooks and swindlers and I’m going to nail you for all you’re worth.”
At which point, Jim Ashby stormed out of the room, enraged and red-faced, yelling further threats as he went down the corridor to his office.
The next morning, he was found dead at his desk by the cleaners.
Plantation A Legal Thriller Page 8