Plymouth & South West Co-Operative Society Ltd v Architecture, Structure & Management Ltd (No 2) [2006] EWHC 3252 (TCC) (18 December 2006)

Plymouth & South West Co-Operative Society Ltd v Architecture, Structure & Management Ltd (No 2) [2006] EWHC 3252 (TCC) (18 December 2006)

The insurers determined, funded, and conducted ASM's defence solely in their own interests after ASM had ceased trading, and but for their actions, PSW would have recovered its judgment and costs directly from the insurers with minimal expense. All five exceptional factors for a non-party costs order were present, justifying an order that each insurer pay 20% of the recoverable costs.

Citation
[2006] EWHC 3252 (TCC)
Parties
Claimant: Plymouth & South West Co-Operative Society Limited; Defendant: Architecture, Structure & Management Limited; Non Party (costs): Ecclesiastical Insurance Office PLC; Non Party (costs): International Insurance Company of Hannover Ltd; Non Party (costs): UN Management Company of Unionamerica Insurance Co Ltd; Non Party (costs): CX Reinsurance Company Ltd; Non Party (costs): Great Lakes Reinsurance (UK) PLC
Jurisdiction
England and Wales
Judgment Date
18 December 2006
Procedural Posture
Application for Non Party Costs Order / Post Judgment, Costs Application
Outcome
Application granted
Legal Topics
Non Party Costs Orders, Professional Indemnity Insurance, Third Parties (rights Against Insurers) Act 1930, Section 51 Supreme Court Act 1981, Costs Liability of Insurers
Civil Procedure Insurance Law Professional Negligence Non Party Costs Orders Professional Indemnity Insurance Third Parties (rights Against Insurers) Act 1930 Section 51 Supreme Court Act 1981 Costs Liability of Insurers

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Parties

Plymouth & South West Co-Operative Society Limited

Claimant

Architecture, Structure & Management Limited

Defendant

Ecclesiastical Insurance Office PLC

Non Party (costs)

International Insurance Company of Hannover Ltd

Non Party (costs)

UN Management Company of Unionamerica Insurance Co Ltd

Non Party (costs)

CX Reinsurance Company Ltd

Non Party (costs)

Great Lakes Reinsurance (UK) PLC

Non Party (costs)

Procedural Posture

Application for Non Party Costs Order / Post Judgment, Costs Application

Legal Issues

  1. 1 Whether non-party costs orders should be made against insurers under section 51 Supreme Court Act 1981
  2. 2 Whether exceptional circumstances exist justifying such orders
  3. 3 Whether insurers' conduct caused the claimant's loss of costs recovery

Ratio Decidendi

The insurers determined, funded, and conducted ASM's defence solely in their own interests after ASM had ceased trading, and but for their actions, PSW would have recovered its judgment and costs directly from the insurers with minimal expense. All five exceptional factors for a non-party costs order were present, justifying an order that each insurer pay 20% of the recoverable costs.

Court Disposition

Application granted

Orders

  • Each insurer joined as non-party for costs purposes under section 51 Supreme Court Act 1981.
  • Each insurer to pay 20% of the overall recoverable costs from ASM to PSW, subject to detailed assessment.