Ukegheson v Gresham Insurance Company Ltd & Ors

Ukegheson v Gresham Insurance Company Ltd & Ors

The Defendants did not breach the insurance contract or commit fraud by refusing to fund the Claimant's legal expenses, as their decisions were based on reasonable professional assessments that the claim had less than a 50% chance of success. The only surviving claim is for the costs of the appeal to the EAT, which the Defendants have agreed to pay, subject to assessment. Damages for mental distress and other heads of claim are not recoverable or are time-barred.

Parties
Claimant: Sebastian Townsend Ukegheson; First Defendant: Gresham Insurance Company; Second Defendant: ARC Legal Assistance Limited; Third Defendant: Russell Kent Limited
Jurisdiction
England and Wales
Judgment Date
09 November 2020
Procedural Posture
Civil (insurance Contract Dispute) / Summary Judgment Application
Outcome
All claims dismissed except for the claim for costs of the appeal to the EAT, which is referred to a costs judge for assessment.
Legal Topics
Breach of Contract, Fraudulent Misrepresentation, Summary Judgment, Damages for Mental Distress, Costs Assessment
Insurance Law Contract Law Tort Law Breach of Contract Fraudulent Misrepresentation Summary Judgment Damages for Mental Distress Costs Assessment

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Parties

Sebastian Townsend Ukegheson

Claimant

Gresham Insurance Company

First Defendant

ARC Legal Assistance Limited

Second Defendant

Russell Kent Limited

Third Defendant

Procedural Posture

Civil (insurance Contract Dispute) / Summary Judgment Application

Legal Issues

  1. 1 Whether the Defendants breached the insurance contract by refusing to fund the Claimant's legal expenses
  2. 2 Whether the Defendants committed fraudulent misrepresentation or deceit
  3. 3 Whether the Claimant is entitled to damages for mental distress

Ratio Decidendi

The Defendants did not breach the insurance contract or commit fraud by refusing to fund the Claimant's legal expenses, as their decisions were based on reasonable professional assessments that the claim had less than a 50% chance of success. The only surviving claim is for the costs of the appeal to the EAT, which the Defendants have agreed to pay, subject to assessment. Damages for mental distress and other heads of claim are not recoverable or are time-barred.

Court Disposition

All claims dismissed except for the claim for costs of the appeal to the EAT, which is referred to a costs judge for assessment.

Orders

  • Claim for costs of the appeal to the EAT to be assessed by a costs judge, subject to the policy limit of £50,000.
  • All other claims dismissed.