Cohen v Lorrells LLP & Ors

Cohen v Lorrells LLP & Ors

The claim for a declaration against the second defendant is struck out because it serves no useful purpose, would not bind the insurer, and puts the second defendant to unnecessary cost where it has no direct liability. However, the claimant is given an opportunity to amend the claim to join the insurer, as this would allow all relevant issues to be resolved in one set of proceedings.

Parties
Claimant: Justin Cohen; First Defendant: Lorrells LLP (in liquidation); Second Defendant: Eldons Berkeley Limited
Jurisdiction
England and Wales
Judgment Date
15 January 2019
Procedural Posture
Civil / Application to Strike Out Claim for Declaratory Relief Against Second Defendant
Outcome
Claim against the second defendant stayed with liberty to apply to amend and join insurer; failing which, claim to be struck out without further order.
Legal Topics
Professional Indemnity Insurance, Successor Practice Rules, Declaratory Relief, Strike Out Applications
Insurance Law Civil Procedure Professional Indemnity Insurance Successor Practice Rules Declaratory Relief Strike Out Applications

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Parties

Justin Cohen

Claimant

Lorrells LLP (in liquidation)

First Defendant

Eldons Berkeley Limited

Second Defendant

Procedural Posture

Civil / Application to Strike Out Claim for Declaratory Relief Against Second Defendant

Legal Issues

  1. 1 Whether the claim for a declaration that the second defendant is a 'successor practice' should be struck out
  2. 2 Whether declaratory relief against the second defendant serves a useful purpose
  3. 3 Whether the second defendant's insurer would be bound by such a declaration

Ratio Decidendi

The claim for a declaration against the second defendant is struck out because it serves no useful purpose, would not bind the insurer, and puts the second defendant to unnecessary cost where it has no direct liability. However, the claimant is given an opportunity to amend the claim to join the insurer, as this would allow all relevant issues to be resolved in one set of proceedings.

Court Disposition

Claim against the second defendant stayed with liberty to apply to amend and join insurer; failing which, claim to be struck out without further order.

Orders

  • Claim for declaration against second defendant stayed for a limited period.
  • Unless claimant applies to lift stay and amend claim to join insurer, claim against second defendant to be struck out without further order.