Sharratt v London Central Bus Co (Accident Group Test Cases Tranche 2) [2003] EWHC 9020 (Costs) (15 May 2003)

Sharratt v London Central Bus Co (Accident Group Test Cases Tranche 2) [2003] EWHC 9020 (Costs) (15 May 2003)

Only the portion of the sum paid by claimants under the TAG scheme that constitutes a genuine insurance premium is recoverable; payments for collateral services, referral fees, or commissions are not recoverable if they breach codes or the indemnity principle.

Citation
[2003] EWHC 9020 (Costs)
Parties
Claimant: The Accident Group (TAG); Defendant: Lloyds Underwriters; Defendant: Litigation Protection Limited (LPL); Defendant: BESSO; Defendant: NIG; Third Party: Investec Bank (UK) Ltd; Third Party: First National Bank; Third Party: Bank of Scotland; Third Party: Panel Solicitors
Jurisdiction
England and Wales
Judgment Date
15 May 2003
Procedural Posture
Test Case (costs Assessment) / Judgment on Tranche 2 Issues
Outcome
Partially allowed
Legal Topics
Conditional Fee Agreements, After the Event Insurance, Referral Fees, Indemnity Principle, Consumer Credit
Civil Procedure Insurance Law Costs Law Conditional Fee Agreements After the Event Insurance Referral Fees Indemnity Principle Consumer Credit

Case Brief

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Parties

The Accident Group (TAG)

Claimant

Lloyds Underwriters

Defendant

Litigation Protection Limited (LPL)

Defendant

BESSO

Defendant

NIG

Defendant

Investec Bank (UK) Ltd

Third Party

First National Bank

Third Party

Bank of Scotland

Third Party

Panel Solicitors

Third Party

Procedural Posture

Test Case (costs Assessment) / Judgment on Tranche 2 Issues

Legal Issues

  1. 1 Is the whole sum payable for insurance by a claimant under the TAG scheme properly to be regarded as a premium within s 29 Access to Justice Act 1999?
  2. 2 Does the sum payable for insurance under the TAG scheme finance services or provide benefits which are collateral or extraneous to such insurance?
  3. 3 Is the premium-element of the sum claimed a reasonable and proportionate sum for the benefits actually purchased and for cases of this character?

Ratio Decidendi

Only the portion of the sum paid by claimants under the TAG scheme that constitutes a genuine insurance premium is recoverable; payments for collateral services, referral fees, or commissions are not recoverable if they breach codes or the indemnity principle.

Court Disposition

Partially allowed

Orders

  • Only genuine insurance premium elements are recoverable as costs.
  • Referral fees breaching the Introduction and Referral Code are irrecoverable.