Pirie v Ayling

Pirie v Ayling

The agreement to pay a premium of 20% of damages is not champertous as the insurer does not divide the spoils or intermeddle in litigation; however, a premium calculated as 20% of damages is unreasonable and disproportionate in simple road accident cases. The recoverable premium is limited to £367.50.

Parties
Claimant: Veronica Pirie; Defendant: Mrs Doreen Violet Ayling
Jurisdiction
England and Wales
Judgment Date
18 February 2003
Procedural Posture
Costs Assessment (post Judgment) / Taxation of Costs
Outcome
Claim for ATE insurance premium allowed in part
Legal Topics
After the Event Insurance, Champerty, Costs Assessment, Reasonableness of Premiums

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 11 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Veronica Pirie

Claimant

Mrs Doreen Violet Ayling

Defendant

Procedural Posture

Costs Assessment (post Judgment) / Taxation of Costs

  1. 1 Whether an ATE insurance premium calculated as 20% of damages is champertous
  2. 2 Whether the claimed ATE insurance premium of £2,600 is reasonable and proportionate

Ratio Decidendi

The agreement to pay a premium of 20% of damages is not champertous as the insurer does not divide the spoils or intermeddle in litigation; however, a premium calculated as 20% of damages is unreasonable and disproportionate in simple road accident cases. The recoverable premium is limited to £367.50.

Court Disposition

Claim for ATE insurance premium allowed in part

Orders

  • Claimant allowed to recover £367.50 for ATE insurance premium inclusive of IPT