LEIG welcomes Court of Appeal judgement in Rogers v Merthyr Tydfil backing ATE insurers over full re, 31 July 2006
Legal Expenses Insurance Group
News Release : 31 July 2006
LEIG welcomes Court of Appeal judgement in Rogers v Merthyr Tydfil backing ATE insurers over full recovery of stepped premiums
The Legal Expenses Insurance Group (LEIG) welcomed the Court of Appeal judgment today in the important test case of Rogers v Merthyr Tydfil CBC.
The Court allowed the appeal and ordered that the full ATE premium should be recovered.
Tony Baker, Director of the LEIG, commented:
The full ATE premium was allowed and this is a landmark decision that will be warmly welcomed by after the event legal expenses insurers. For the Access to Justice Act to work as intended and allow claimants access to justice, it was imperative that adequate ATE premiums should be recoverable from the losing party if a claimant is successful.
He added:
The guidance from the court was also most valuable especially on how proportionality applies to such premiums and as to the approach which Courts should follow in considering these sorts of challenges in future.
The Court also supported the views previously expressed by Master Hurst that production of generalised material such as that found in Litigation Funding - upon which the Defendants had relied - was of no assistance in determining the level of premium which should be allowed. In essence, the Court accepted that if a solicitor acted reasonably in selecting a reputable ATE insurer for his clients that will usually be sufficient to enable full recovery of the premium charged.
The case involved a claim by Jonathan Rogers for damages suffered by him in a fall in a local park. The defendant Merthyr Tydfil CBC contested liability but at trial the claim was successful and damages of just over £3,000 were awarded to the Claimant. The case was conducted under a Conditional Fee Agreement supported by an ATE policy taken out with 80e - the specialist After The Event Insurance division of DAS Legal Expenses Insurance.
This policy provided for the premium to increase at stages as the case progressed, and the total premium payable as a result of the case going to trial amounted to £4860 plus IPT.
The District Judge who heard the case allowed the premium in full, but on appeal to the Circuit Judge, Merthyr were successful in having this reduced to £900.
The Court of Appeal gave permission for a further appeal recognising the importance of the case to the ATE industry and the need for guidance as to the approach to be taken on recoverability of ATE premiums generally.
This is an important test case and the judgement and guidance should now stop the large number of challenges to the full recoverability of ATE premiums. There had been a number of arbitrary reductions of ATE premiums by judges at detailed assessments; it was clear judges were not aware of the actuarial principles behind the setting of premiums and they have been reducing premiums to levels that seem right to them. The Court of Appeal judgement should end this once and for all.
-ENDS -
Notes for Editors
1. The Legal Expenses Insurance Group (LEIG) was formed in April 2006 by a number of leading legal expenses insurers and intermediaries. The aim of the Group is to work together to protect and advance the rights of claimants to justice and fair levels of compensation. The following companies have to date joined the LEIG:
Albany Assistance Ltd
Angel Assistance Limited
DAS Legal Expenses Insurance Company Ltd
LAMP Group Ltd
MSL Legal Expenses Ltd
Red Sands Insurance (Europe) Ltd
ULR Norwich
It is estimated that members represent in excess of eight million motor legal expense policyholders and over 16 million policyholders in general.
2. Tony Bakers contact details are:
Tony Baker
Tel: 01920 465000
Mobile: 07725 462528
Email: thetonybaker@gmail.com
A jpeg picture is available on request.
3. Website: www.leig.org
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