Big_guns_called_in_as_Norwich_Union_pushes_to_appeal_recoverability_ruling

Norwich Union is set to apply for expedited leave to appeal a recent ruling on the recoverability of after-the-event insurance (ATE) premiums and success fees...Norwich Union is set to apply for expedited leave to appeal a recent ruling on the recoverability of after-the-event insurance (ATE) premiums and success fees, paving the way for a definitive Court of Appeal determination of the issue.And the insurer has drafted in the president of the Forum of Insurance Lawyers to act in this key case.

Andrew Parker, a partner at Beachcroft Wansbroughs, has replaced Anthony Hughes of Manchester firm Peter Rickson & Partners.

Manchester firm Amelans acted for the claimant.Last month, Chester County Court ruled on appeal that an insurance premium and 40% success fee could be recovered even in cases where proceedings are not issued (see [2001] Gazette, 1 February, 3).At first greeted by claimant solicitors and insurers as a firm sign that premiums would be recoverable in the event of a win, many including Claims Direct chief executive Colin Poole have subsequently claimed that the case is ambiguous.

An appeal should clarify the issue.

Mr Parker said he had received letters from a number of lawyers involved in ATE insurance, asking whether the case could be expedited so that the decision could be brought forward.

He said he intended to ask for an expedited hearing, but only after the appeal is formally lodged, which he expects will happen this week.Mr Parker said: Clearly it is in the interests of all parties, and lawyers on both sides, that these issues are resolved as soon as possible.

Frances McCarthy, president of the Association of Personal Injury Lawyers and partner with City firm Pattinson & Brewer, agreed that it was to everyones advantage for the issue to be settled finally.

She said the government had announced last year that successful personal injury claimants should recover their insurance premiums even when cases do not proceed to court (see [2001] Gazette, 5 January, 4).

The government has now given a clear steer to recoverability, and I am surprised that they are appealing the issue at all.

Jeremy Fleming