Manchikalapati & Ors, R (on the application of) v The Financial Services Compensation Scheme
The FSCS compensation scheme does not extend to post-judgment interest and litigation costs not owed under the terms of the insurance policy; only amounts due under the contract of insurance are compensable under the Policyholder Protection Rules.
- Parties
- Claimants/respondents: Manchikalapati and Others; Defendant/appellant: Financial Services Compensation Scheme
- Jurisdiction
- England and Wales
- Judgment Date
- 11 October 2024
- Procedural Posture
- Judicial Review Appeal / Court of Appeal Judgment
- Outcome
- Appeal allowed; Decision of FSCS reinstated.
- Legal Topics
- Policyholder Protection Rules, Compensation Scheme Scope, Statutory Interpretation
Case Brief
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Manchikalapati and Others
Claimants/respondents
Financial Services Compensation Scheme
Defendant/appellant
Procedural Posture
Judicial Review Appeal / Court of Appeal Judgment
Legal Issues
- 1 Whether FSCS compensation scheme covers post-judgment interest and litigation costs not owed under insurance policy
- 2 Interpretation of 'in respect of' in Policyholder Protection Rules
- 3 Application of Barras principle to regulatory rules
Ratio Decidendi
The FSCS compensation scheme does not extend to post-judgment interest and litigation costs not owed under the terms of the insurance policy; only amounts due under the contract of insurance are compensable under the Policyholder Protection Rules.
Court Disposition
Appeal allowed; Decision of FSCS reinstated.
Orders
- Decision quashing FSCS refusal reversed; FSCS not liable to compensate for post-judgment interest and litigation costs.
Full Case Text
Judgment text and source record
Sign in to read
Sign in to read the full judgment text
Sign in to read the full judgment text. Downloads and additional research tools may depend on your plan.
Sign in to read the full judgment