A settlement agreement that called for a Lloyd's of London syndicate to pay for a $5.1 million settlement in a dispute involving claims management firm and an insurance agency, in which the syndicate was not involved, was "collusive and distorts the adversarial process," a federal appeals court ruled on Friday. Lloyd's syndicate Novae Corporate Underwriting Ltd. had issued an insurance policy to Toronto-based Fairfax Financial Holdings Ltd., parent company of Birmingham, Alabama-based Cunningham Lindsey Claims Management Inc., that had a $1 million retention and covered both Fairfax and Cunningham, according to Friday's ruling by the 7th U.S. Circuit Court of Appeals in Chicago in Diane M. Hendricks and Hendricks Holding Company Inc. v.