Callery v Gray [2001] EWCA Civ 1117 (17 July 2001)

Callery v Gray [2001] EWCA Civ 1117 (17 July 2001)

ATE insurance premiums are in principle recoverable as part of a claimant's costs, even where the claim is resolved without proceedings, provided the costs are reasonable. It is permissible for a claimant to enter into a CFA with a success fee and to take out ATE insurance at the outset, before the letter of claim and defendant's response. For modest, straightforward personal injury claims, a 20% success fee is the maximum reasonable uplift at the outset. The reasonableness of ATE premiums requires further inquiry by a costs judge.

Citation
[2001] EWCA Civ 1117
Parties
Claimant/respondent: Stephen Callery; Defendant/appellant: Charles Gray; Claimant/respondent: Gregory Charles Russell; Defendant/appellant: Pal Pak Corrugated Ltd
Jurisdiction
England and Wales
Judgment Date
17 July 2001
Procedural Posture
Appeal (civil) / Court of Appeal Judgment Following Appeals From Chester County Court and Liverpool County Court
Outcome
Appeals allowed in part and dismissed in part
Legal Topics
Conditional Fee Agreements, After the Event Insurance, Costs Recovery, Success Fees, Access to Justice Act 1999
Civil Procedure Costs Personal Injury Conditional Fee Agreements After the Event Insurance Costs Recovery Success Fees Access to Justice Act 1999

Case Brief

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Parties

Stephen Callery

Claimant/respondent

Charles Gray

Defendant/appellant

Gregory Charles Russell

Claimant/respondent

Pal Pak Corrugated Ltd

Defendant/appellant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment Following Appeals From Chester County Court and Liverpool County Court

Legal Issues

  1. 1 Whether ATE insurance premiums are recoverable as costs in costs-only proceedings
  2. 2 At what stage it is appropriate to enter into a CFA and take out ATE insurance
  3. 3 Reasonableness of success fees and ATE premiums

Ratio Decidendi

ATE insurance premiums are in principle recoverable as part of a claimant's costs, even where the claim is resolved without proceedings, provided the costs are reasonable. It is permissible for a claimant to enter into a CFA with a success fee and to take out ATE insurance at the outset, before the letter of claim and defendant's response. For modest, straightforward personal injury claims, a 20% success fee is the maximum reasonable uplift at the outset. The reasonableness of ATE premiums requires further inquiry by a costs judge.

Court Disposition

Appeals allowed in part and dismissed in part

Orders

  • Success fee in Callery appeal reduced to 20%
  • Russell appeal dismissed; 20% success fee upheld