An influential Bermudian insurance figure has been named as a defendant in a lawsuit that centres around the $1.8-billion sale of Johnson & Higgins (J&H) to rival broker and captive manager Marsh & McLennan Cos. Inc. (MMC), earlier this year.

Chairman of Government's Insurance Advisory Committee and president of Inter-Ocean Management Ltd., Brian R. Hall, is one of 24 defendants who were former J&H directors.

Business Insurance (BI) reported this week that each of those directors reportedly walked away from the global merger with at least $36 million.

Nine retired directors who received between $9 million and $12 million each from the deal are now claiming in a lawsuit that the J&H board of directors fraudulently manipulated the broker's corporate structure to allow the sale of its restricted stock to MMC.

The suit claims the aim of the alleged manipulation was to keep the lion's share of the proceeds for themselves and block the retirees from being involved in deciding if the deal should go through. The lawyer for the retired nine called it a case of "greed and betrayal.'' But the former J&H chairman, David A. Olsen, who was named in the suit, and who pocketed $63 million, said the retirees received far more than they were entitled to.

Now MMC's vice chairman, Mr. Olsen was quoted by BI: "We expect to be fully vindicated.'' And a statement issued on behalf of all the defendants said they were disappointed with the lawsuit and they believe the retirees "were treated not only fairly but generously.'' MMC, also named in the suit, has issued an internal memo to staff saying as a matter of policy they would make no comment on the litigation, although they do not feel they should be involved.

Brian R. Hall COURTS CTS