Double court battle could force Equitable somersault

A LEGAL tangle could hinder Equitable Life's £2.1bn High Court battle against auditor Ernst & Young, scheduled for the spring.

The troubled insurer's lawyers face the awkward prospect of having to argue two potentially opposing cases before the same judge.

Equitable is being sued by 416 annuity policyholders who served a writ in Bristol last November.

The company, still clawing its way back from the brink of insolvency, asked for the case to be heard in London. It will get its wish. But what Equitable's lawyers hadn't bargained for - and what is now a distinct possibility - is that Mr Justice Langley, who will hear the policyholders' case, may also preside over Equitable's case against Ernst & Young.

The Bristol Mercantile Court is thought to have recommended that Langley should hear the case based on his knowledge of the insurer.

If this happens, Equitable could be forced to deny arguments made by policyholders, which will be largely the same as the arguments it poses against its auditor in the other case.

Paul Braithwaite of Equitable Members' Action Group, said: 'Equitable is claiming billions against the auditor for allowing the fund to get into such a state, while denying to its impoverished with-profits annuitants that it took place.

'If annuitants come before the same judge, he may not be amused at such hypocrisy from the company.'