Palmer v The Estate of Kevin Palmer Deceased & Ors

Palmer v The Estate of Kevin Palmer Deceased & Ors

The Court of Appeal held that the trial judge was entitled to find, on the evidence, that RSA was the real party in interest, funding and controlling the defence solely for its own benefit, with PZP's interests being immaterial. This exceptional circumstance justified a non-party costs order against RSA under section 51.

Parties
Claimant: Kylie Palmer; First Defendant/respondent: The Estate of Kevin Palmer Deceased; Second Defendant/respondent: Motor Insurers’ Bureau; Third Defendant: PZ Products Limited; Fourth Defendant/appellant: Royal and Sun Alliance Insurance Plc
Jurisdiction
England and Wales
Judgment Date
06 February 2008
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Costs Order
Outcome
Appeal dismissed
Legal Topics
Non Party Costs Orders, Liability Insurance, Product Liability, Costs Discretion, Exceptionality in Costs Orders
Civil Procedure Insurance Law Non Party Costs Orders Liability Insurance Product Liability Costs Discretion Exceptionality in Costs Orders

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Kylie Palmer

Claimant

The Estate of Kevin Palmer Deceased

First Defendant/respondent

Motor Insurers’ Bureau

Second Defendant/respondent

PZ Products Limited

Third Defendant

Royal and Sun Alliance Insurance Plc

Fourth Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Costs Order

Legal Issues

  1. 1 Whether the insurer (RSA) should be personally liable for costs under section 51 of the Supreme Court Act 1981 after funding the unsuccessful defence of its insured where the policy limit was exceeded
  2. 2 Whether the insurer's conduct was motivated exclusively or predominantly by its own interests so as to justify a non-party costs order

Ratio Decidendi

The Court of Appeal held that the trial judge was entitled to find, on the evidence, that RSA was the real party in interest, funding and controlling the defence solely for its own benefit, with PZP's interests being immaterial. This exceptional circumstance justified a non-party costs order against RSA under section 51.

Court Disposition

Appeal dismissed

Orders

  • Royal and Sun Alliance Insurance Plc to pay the costs incurred by the claimant, the estate, and the Motor Insurers’ Bureau after 1 September 2003, as previously ordered by the High Court.