All CFA premiums deemed reasonable by the costs master

Premiums of insurance products backing conditional fee agreements will be deemed reasonable unless defendants can show they are not, one of the last pieces of the Callery v Gray jigsaw is expected to say.Full judgment in Callery is close to completion, with costs master John O'Hare circulating his draft report into the level of premiums to all parties.It is understood that the report creates a presumption that all premiums are reasonable, leaving defendants to argue that they are not, having recourse to figures in Litigation Funding - the Gazette's sister magazine - and any other sources.

Jason Rowley, partner with Kent firm AE Wyeth & Co and chairman of Forum for Insurance Lawyers' costs special interest group, said the draft was a 'waste of time'.

The level of premiums would need to be determined by common law cases in the county courts, or by re-opening the Law Society and Association of British Insurers' joint mediation, he said.Jeremy Fleming