1. Before a managing agent of a syndicate that underwrote an insurance can bring a legal claim against the managing agent of another syndicate in relation to the determination of a CLA claim it must attempt to resolve the dispute as follows:
(a) The managing agent shall notify the other following Lloyd’s syndicates which underwrote the insurance to which the CLA claim relates that it is commencing the dispute resolution procedure prescribed in this [paragraph 1.].
(b) The dispute shall first be referred to senior representatives of the managing agents in dispute who shall meet in a good faith effort to resolve the dispute. If resolution is not achieved within 14 days from the date the dispute was referred to these individuals, the matter shall be escalated to a board member responsible for claims of each managing agent who shall attempt to resolve the matter.
(c) If any dispute referred to in sub-paragraph (a) above has not been resolved within 21 days from the date upon which the matter is referred to the board members, then the parties shall enter into an agreement to mediate in such form as may be prescribed by Lloyd’s from time to time and shall promptly notify Lloyd’s of this action.
(d) If the resulting mediation fails to resolve the dispute, then the dispute shall be settled by arbitration in accordance with arbitration rules as may be prescribed by Lloyd’s from time to time, provided always that the decision to commence an arbitration must be taken by the board of the managing agent in question, the board having concluded that the other parties to the arbitration have, in their view, –
(i) failed to exercise the reasonable care of a reasonably competent managing agent; and
(ii) that failure has given rise to serious adverse consequences for the syndicate of the managing agent commencing the arbitration.
Lloyd’s Claims Lead Arrangements, paragraph 25
2. The Council may give directions as necessary to ensure that managing agents comply with [paragraph 1. above].
Lloyd’s Claims Lead Arrangements, paragraph 26