Sharratt v London Central Bus Co (Accident Group Test Cases Tranche 2)

Sharratt v London Central Bus Co (Accident Group Test Cases Tranche 2)

The sums payable for insurance by a claimant under the TAG scheme are not wholly recoverable as premium under Section 29 Access to Justice Act 1999. Only the portion relating to insuring the risk of incurring a costs liability is recoverable, with deductions for collateral benefits such as ringfencing, funding costs, and AIL fees. Referral fees paid to AIL constitute a breach of the Introduction and Referral Code and are irrecoverable. Panel solicitors' obligations regarding unrecovered disbursements do not breach the indemnity principle.

Parties
Claimant: Sharratt; Defendant: London Central Bus Co; Defendant: Other Defendants
Jurisdiction
England and Wales
Judgment Date
15 May 2003
Procedural Posture
Detailed Assessment Proceedings (costs Only) / Judgment on Tranche 2 Issues
Outcome
Premiums claimed under the TAG scheme are not wholly recoverable; only specified amounts are allowed as recoverable premium. Referral fees paid to AIL are irrecoverable. Panel solicitors' obligations regarding unrecovered disbursements do not breach the indemnity principle.
Legal Topics
Conditional Fee Agreements, After the Event Insurance, Indemnity Principle, Referral Fees, Recoverability of Premiums, Disbursements
Civil Procedure Costs Law Insurance Law Conditional Fee Agreements After the Event Insurance Indemnity Principle Referral Fees Recoverability of Premiums +1 more

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Parties

Sharratt

Claimant

London Central Bus Co

Defendant

Other Defendants

Defendant

Procedural Posture

Detailed Assessment Proceedings (costs Only) / Judgment on Tranche 2 Issues

Legal Issues

  1. 1 Whether the whole sum payable for insurance under the TAG scheme is properly regarded as a premium under Section 29 Access to Justice Act 1999
  2. 2 Whether the sum payable for insurance finances services or benefits collateral or extraneous to insurance
  3. 3 Whether the premium-element claimed is reasonable and proportionate

Ratio Decidendi

The sums payable for insurance by a claimant under the TAG scheme are not wholly recoverable as premium under Section 29 Access to Justice Act 1999. Only the portion relating to insuring the risk of incurring a costs liability is recoverable, with deductions for collateral benefits such as ringfencing, funding costs, and AIL fees. Referral fees paid to AIL constitute a breach of the Introduction and Referral Code and are irrecoverable. Panel solicitors' obligations regarding unrecovered disbursements do not breach the indemnity principle.

Court Disposition

Premiums claimed under the TAG scheme are not wholly recoverable; only specified amounts are allowed as recoverable premium. Referral fees paid to AIL are irrecoverable. Panel solicitors' obligations regarding unrecovered disbursements do not breach the indemnity principle.

Orders

  • Recoverable premium for 2000 year: £450 including IPT
  • Recoverable premium for 2001 Lloyds: £480 including IPT