PM Law Ltd & Motorplus Ltd & Ors [2016] EWHC 193 (QB) (05 February 2016)

PM Law Ltd & Motorplus Ltd & Ors [2016] EWHC 193 (QB) (05 February 2016)

PM Law Limited has no title to sue under the BTE and ATE insurance policies as it is not a party to those contracts, nor has it been assigned the right to sue. The policies indemnify the insured clients, not their solicitors. The documents relied on by PM Law do not confer a direct right of recovery on PM Law. Motorplus Limited is not liable under the policies as it is not the insurer. The pleaded claims in paragraphs 36 to 41 and 48 of the Particulars of Claim are unsustainable and disclose no reasonable grounds. The Contracts (Rights of Third Parties) Act 1999 does not apply to confer a direct right of action on PM Law. Accordingly, those parts of the claim are struck out and summary...

Citation
[2016] EWHC 193 (QB)
Parties
Claimant: PM Law Limited; First Defendant: Motorplus Limited; Second Defendant: Members of Equity 218 at Lloyd's (t/a Equity Red Star); Third Defendant: Alpha Insurance A/S; Fourth Defendant: Ageas Insurance Limited
Jurisdiction
England and Wales
Judgment Date
05 February 2016
Procedural Posture
Civil (contract/insurance) / Application for Strike Out And/or Summary Judgment
Outcome
Application granted. Relevant paragraphs struck out. Summary judgment for Motorplus Limited on those claims.
Legal Topics
Strike Out Applications, Summary Judgment, Legal Expenses Insurance, Agency, Third Party Rights, Restitution
Contract Law Insurance Law Civil Procedure Strike Out Applications Summary Judgment Legal Expenses Insurance Agency Third Party Rights +1 more

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Parties

PM Law Limited

Claimant

Motorplus Limited

First Defendant

Members of Equity 218 at Lloyd's (t/a Equity Red Star)

Second Defendant

Alpha Insurance A/S

Third Defendant

Ageas Insurance Limited

Fourth Defendant

Procedural Posture

Civil (contract/insurance) / Application for Strike Out And/or Summary Judgment

Legal Issues

  1. 1 Whether PM Law Limited has title to sue under BTE and ATE insurance policies issued to its clients
  2. 2 Whether Motorplus Limited is liable to pay PM Law Limited sums due under such policies
  3. 3 Whether the Particulars of Claim disclose a reasonable cause of action against Motorplus Limited

Ratio Decidendi

PM Law Limited has no title to sue under the BTE and ATE insurance policies as it is not a party to those contracts, nor has it been assigned the right to sue. The policies indemnify the insured clients, not their solicitors. The documents relied on by PM Law do not confer a direct right of recovery on PM Law. Motorplus Limited is not liable under the policies as it is not the insurer. The pleaded claims in paragraphs 36 to 41 and 48 of the Particulars of Claim are unsustainable and disclose no reasonable grounds. The Contracts (Rights of Third Parties) Act 1999 does not apply to confer a direct right of action on PM Law. Accordingly, those parts of the claim are struck out and summary...

Court Disposition

Application granted. Relevant paragraphs struck out. Summary judgment for Motorplus Limited on those claims.

Orders

  • Paragraphs 36 to 41 and 48 of the Particulars of Claim are struck out as against Motorplus Limited.
  • Summary judgment is entered for Motorplus Limited on the claims set out in those paragraphs.