Motto & Ors v Trafigura Ltd & Anor

Motto & Ors v Trafigura Ltd & Anor

The ATE premium claimed is recoverable as 'premium' under Section 29 of the Access to Justice Act 1999, as it represents the consideration for insurance cover provided by Great Lakes, administered by First Assist, and does not include non-insurance benefits. The premium calculation method and risk multiplier are reasonable and proportionate, within market norms. There is no basis for deconstructing the premium or reducing it based on the agent-insurer arrangement. The premium should be calculated according to the policy terms, based on the Defendants' costs plus Claimants' expenses.

Parties
Claimants: Yao Essaie Motto & Ors; Defendant: Trafigura Ltd; Defendant: Trafigura Beheer BV
Jurisdiction
England and Wales
Judgment Date
12 April 2011
Procedural Posture
Costs Assessment / Judgment on ATE Premium
Outcome
Premium recoverable as claimed under policy; Defendants may accept original costs figure or produce evidence for reduction.
Legal Topics
ATE Insurance Premium, Reasonableness of Premium, Section 29 Access to Justice Act 1999, Premium Calculation, Agent Insurer Relationship

Case Brief

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Parties

Yao Essaie Motto & Ors

Claimants

Trafigura Ltd

Defendant

Trafigura Beheer BV

Defendant

Procedural Posture

Costs Assessment / Judgment on ATE Premium

  1. 1 Whether the ATE premium claimed is recoverable as 'premium' under Section 29 of the Access to Justice Act 1999
  2. 2 Whether the premium should be deconstructed to identify insurer and intermediary elements
  3. 3 Whether the premium calculation method and risk multiplier are reasonable and proportionate

Ratio Decidendi

The ATE premium claimed is recoverable as 'premium' under Section 29 of the Access to Justice Act 1999, as it represents the consideration for insurance cover provided by Great Lakes, administered by First Assist, and does not include non-insurance benefits. The premium calculation method and risk multiplier are reasonable and proportionate, within market norms. There is no basis for deconstructing the premium or reducing it based on the agent-insurer arrangement. The premium should be calculated according to the policy terms, based on the Defendants' costs plus Claimants' expenses.

Court Disposition

Premium recoverable as claimed under policy; Defendants may accept original costs figure or produce evidence for reduction.

Orders

  • The reasonable and proportionate premium is the sum payable under the policy based on Defendants' costs plus Claimants' expenses.
  • Defendants may stand by their original figure of £14.6 million for costs or submit evidence justifying a reduction.