TGA Chapman Ltd & Anor v Christopher & Anor [1997] EWCA Civ 2052 (8th July, 1997)

TGA Chapman Ltd & Anor v Christopher & Anor [1997] EWCA Civ 2052 (8th July, 1997)

Where liability insurers fund, control, and direct the defence of litigation exclusively in their own interests, and the insured is without means, it is just and appropriate under Section 51 of the Supreme Court Act 1981 to order the insurers to pay the successful party's costs, even if this exposes the insurers to liability beyond the policy limit.

Citation
[1997] EWCA Civ 2052
Parties
Plaintiff/respondent: TGA Chapman Limited; Plaintiff/respondent: Benson Turner Limited; First Defendant: Paul George Christopher; Second Defendant/appellant: Sun Alliance and London Insurance PLC
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From High Court (queen's Bench Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Non Party Costs Orders, Section 51 Supreme Court Act 1981, Liability Insurance Limits, Costs Following the Event, Third Parties (rights Against Insurers) Act 1930
Civil Procedure Insurance Law Non Party Costs Orders Section 51 Supreme Court Act 1981 Liability Insurance Limits Costs Following the Event Third Parties (rights Against Insurers) Act 1930

Case Brief

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Parties

TGA Chapman Limited

Plaintiff/respondent

Benson Turner Limited

Plaintiff/respondent

Paul George Christopher

First Defendant

Sun Alliance and London Insurance PLC

Second Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (queen's Bench Division) to Court of Appeal

Legal Issues

  1. 1 Whether liability insurers can be ordered to pay the successful party's costs under Section 51 of the Supreme Court Act 1981 when the policy limit has been exhausted
  2. 2 Whether the contractual limit of insurance cover precludes a costs order against insurers as non-parties

Ratio Decidendi

Where liability insurers fund, control, and direct the defence of litigation exclusively in their own interests, and the insured is without means, it is just and appropriate under Section 51 of the Supreme Court Act 1981 to order the insurers to pay the successful party's costs, even if this exposes the insurers to liability beyond the policy limit.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Leave to appeal to the House of Lords refused