Ali v Ali & Ors

Ali v Ali & Ors

The costs direction was made as a result of a misunderstanding regarding the indemnity arrangements between the Third and Fourth Defendants. Since the Third Defendant was indemnified except in the event of non-cooperation, he was in the same position as a typical insured defendant, and separate representation was not justified. The interests of justice required revocation of the costs direction.

Parties
Claimant: Wajid Ali; First Defendant: Rajid Ali; Second Defendant: Co-operative Insurance Society Limited; Third Defendant: Craig Lodge; Fourth Defendant: Allianz Insurance PLC
Jurisdiction
England and Wales
Judgment Date
23 May 2013
Procedural Posture
Civil (road Traffic Accident) / Post Trial Application to Revoke Costs Direction
Outcome
Application granted; costs direction revoked.
Legal Topics
Costs, Indemnity Principle, Separate Representation, Article 75 Insurers
Civil Procedure Insurance Law Costs Indemnity Principle Separate Representation Article 75 Insurers

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Parties

Wajid Ali

Claimant

Rajid Ali

First Defendant

Co-operative Insurance Society Limited

Second Defendant

Craig Lodge

Third Defendant

Allianz Insurance PLC

Fourth Defendant

Procedural Posture

Civil (road Traffic Accident) / Post Trial Application to Revoke Costs Direction

Legal Issues

  1. 1 Whether the costs direction regarding separate representation of the Third and Fourth Defendants should be revoked due to a misunderstanding of the indemnity arrangements.
  2. 2 Whether the existence of an indemnity agreement between the Third and Fourth Defendants negated the justification for separate representation and associated costs.

Ratio Decidendi

The costs direction was made as a result of a misunderstanding regarding the indemnity arrangements between the Third and Fourth Defendants. Since the Third Defendant was indemnified except in the event of non-cooperation, he was in the same position as a typical insured defendant, and separate representation was not justified. The interests of justice required revocation of the costs direction.

Court Disposition

Application granted; costs direction revoked.

Orders

  • The costs direction made on 10 November 2010 is revoked.
  • The Third and Fourth Defendants shall pay the Second Defendant’s costs of and incidental to the application, summarily assessed at £11,736.50.