Claimant triumph over recoverability of premiumsClaimant solicitors have welcomed the first appeal-level decision on recoverability of insurance spremiums and success fees in conditional fee cases, after it found in favour of the claimant.

The decision of designated civil judge Gareth Edwards at Chester County Court, held that an insurance premium could be recovered even in cases where proceedings were not issued.

He said the definition of proceedings included the contemplation of proceedings.

Judge Edwards also concluded that the claimant had been rightly advised to take out after-the-event insurance at an early stage to maximise protection and minimise policy costs.The decision followed an earlier costs-only ruling in the case.Although the claimant in the case was a passenger in a car hit from behind, the judge also declined to overturn the lower court's finding that a 40% success fee could be recovered.Anthony Hughes, of Peter Rickson & Partners in Manchester which acted for the insurer, said insurers would now have to review their reserves because of the potential increase in costs liabilities.The claimant's solicitor Andrew Twambley, a partner at Manchester-based Amelans, said the decision would now do what the government had intended and allow innocent victims to make a full recovery.Mark Harvey, secretary of the Association of Personal Injury Lawyers (APIL), said the group welcomed the clarification on recoverability afforded by the case.

Andrew Parker, president of the Forum of Insurance Lawyers, said he was disappointed by the decision on the insurance premium and concerned by the judge's acceptance of a 40% success fee in such a straightforward case.Sue Allen