Geologistics Ltd, R (on the application of) v Financial Services Compensation Scheme

Geologistics Ltd, R (on the application of) v Financial Services Compensation Scheme

The insured's legal costs incurred in defending a claim for which compulsory insurance was required are sufficiently connected to the liability subject to compulsory insurance to fall within the protection of section 6(5) of the Policyholders Protection Act 1975. The Scheme is liable to pay such costs.

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

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Parties

Geologistics Limited

Claimant

Financial Services Compensation Scheme

Defendant

Procedural Posture

Judicial Review / 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 unsuccessfully defending a claim for damages for personal injuries brought by an employee, where the insurer is in liquidation.

Ratio Decidendi

The insured's legal costs incurred in defending a claim for which compulsory insurance was required are sufficiently connected to the liability subject to compulsory insurance to fall within the protection of section 6(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 that the Scheme is liable to pay the claimant's proper costs of defending the proceedings brought by Mr Froggatt up to 17th June 2001.