Amelans uses ancient law to challenge insurers

By Paula Rohan

Crusading personal injury firm Amelans is set for its latest challenge to the insurance industry - a court case over contracts between costs assessors and insurers on the grounds that they fall foul of a law which dates back to 1275.

Champerty - the support of litigation by a third party in return for a share of the profits - was abolished both as a crime and a tort in 1967, though it is still unlawful where it is contrary to public policy.

Manchester-based Amelans said it will argue that champerty arises because assessors' fees depend on how much they knock off a solicitor's bill, but have no legitimate interest in the proceedings.

The firm also suggested that part of the tension between claimant and insurance solicitors over costs was down to assessors offering 'cosy deals', urging firms to inflate their bills so that when costs are slashed the firm and assessor are still in pocket but the insurer is left short changed.

Partner Martin Cockx said: 'Judges at district judge level are beginning to realise what is going on and they don't like it very much.'

The firm acted in the defining conditional fee cases of Callery, Sarwar and Tilbey.

Jason Rowley, vice-president of the Forum of Insurance Lawyers, said the organisation had no evidence of 'cosy deals'.

He conceded that a potentially champertous situation could arise in the 10% of cases which end up in court, but argued that this would result in costs penalties later on.