Legg & Ors v Sterte Garage Ltd & Anor [2016] EWCA Civ 97 (23 February 2016)

Legg & Ors v Sterte Garage Ltd & Anor [2016] EWCA Civ 97 (23 February 2016)

The insurers, having taken over and funded the defence of the claim for their own interests and having withdrawn when the claim was amended but not abandoned as to the covered event, were properly subject to a non-party costs order under section 51(3) of the Senior Courts Act 1981. Additionally, the policy wording entitled the insured to indemnity for the costs order, and this right vested in the claimants under the Third Party (Rights Against Insurers) Act 1930.

Citation
[2016] EWCA Civ 97
Parties
Claimant/respondent: Ewart Charles Legg; Claimant/respondent: Valerie Ivena Isabel Legg; Claimant/respondent: Tina Taylor; Claimant/respondent: Tracey Lee; Claimant/respondent: Francis Lee; Claimant/respondent: Eileen Porter; Claimant/respondent: Julie Ann Dorey; First Defendant: Sterte Garage Limited; Second Defendant/appellant: Aviva UK Limited
Jurisdiction
England and Wales
Judgment Date
23 February 2016
Procedural Posture
Appeal (civil) / Appeal From County Court Final Costs Order
Outcome
Appeal dismissed
Legal Topics
Non Party Costs Orders, Third Party (rights Against Insurers) Act 1930, Public Liability Insurance, Pollution Exclusion Clauses, Limitation of Actions, Nuisance, Negligence, Rylands V Fletcher Liability
Insurance Law Civil Procedure Environmental Law Non Party Costs Orders Third Party (rights Against Insurers) Act 1930 Public Liability Insurance Pollution Exclusion Clauses Limitation of Actions +3 more

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Parties

Ewart Charles Legg

Claimant/respondent

Valerie Ivena Isabel Legg

Claimant/respondent

Tina Taylor

Claimant/respondent

Tracey Lee

Claimant/respondent

Francis Lee

Claimant/respondent

Eileen Porter

Claimant/respondent

Julie Ann Dorey

Claimant/respondent

Sterte Garage Limited

First Defendant

Aviva UK Limited

Second Defendant/appellant

Procedural Posture

Appeal (civil) / Appeal From County Court Final Costs Order

Legal Issues

  1. 1 Whether a non-party costs order should be made against insurers under section 51(3) of the Senior Courts Act 1981
  2. 2 Whether claimants are entitled to indemnity for costs under the insurance policy and the Third Party (Rights Against Insurers) Act 1930

Ratio Decidendi

The insurers, having taken over and funded the defence of the claim for their own interests and having withdrawn when the claim was amended but not abandoned as to the covered event, were properly subject to a non-party costs order under section 51(3) of the Senior Courts Act 1981. Additionally, the policy wording entitled the insured to indemnity for the costs order, and this right vested in the claimants under the Third Party (Rights Against Insurers) Act 1930.

Court Disposition

Appeal dismissed

Orders

  • Insurers to pay claimants' costs of the proceedings as ordered by the County Court