Geologistics Ltd, R (on the application of) v Financial Services Compensation Scheme [2003] EWHC 629 (Admin) (04 March 2003)

Geologistics Ltd, R (on the application of) v Financial Services Compensation Scheme [2003] EWHC 629 (Admin) (04 March 2003)

Defence costs incurred by the insured in defending a claim for personal injuries brought by an employee are sufficiently connected to the liability subject to compulsory insurance under section 1 of the Employers' Liability (Compulsory Insurance) Act 1969, and thus fall within the protection of section 6(4) and (5) of the Policyholders Protection Act 1975. The Scheme is liable to pay such costs.

Citation
[2003] EWHC 629 (Admin)
Parties
Claimant: Geologistics Limited; Defendant: Financial Services Compensation Scheme
Jurisdiction
England and Wales
Judgment Date
04 March 2003
Procedural Posture
Judicial Review / Final Judgment
Outcome
Claim allowed
Legal Topics
Policyholders Protection Act 1975, Employers' Liability (compulsory Insurance) Act 1969, Compulsory Insurance, Indemnity for Defence Costs, Statutory Interpretation
Insurance Law Administrative Law Policyholders Protection Act 1975 Employers' Liability (compulsory Insurance) Act 1969 Compulsory Insurance Indemnity for Defence Costs Statutory Interpretation

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Parties

Geologistics Limited

Claimant

Financial Services Compensation Scheme

Defendant

Procedural Posture

Judicial Review / Final Judgment

Legal Issues

  1. 1 Whether the Financial Services Compensation Scheme is liable under section 6(5) of the Policyholders Protection Act 1975 to pay the insured's legal costs incurred in defending a claim for personal injuries by an employee

Ratio Decidendi

Defence costs incurred by the insured in defending a claim for personal injuries brought by an employee are sufficiently connected to the liability subject to compulsory insurance under section 1 of the Employers' Liability (Compulsory Insurance) Act 1969, and thus fall within the protection of section 6(4) and (5) of the Policyholders Protection Act 1975. The Scheme is liable to pay such costs.

Court Disposition

Claim allowed

Orders

  • Declaratory relief granted in favour of the claimant
  • Scheme to pay claimant's proper costs of defending the proceedings up to 17th June 2001