Norwich Union petitions House of Lords over Callery

Claimant and insurance solicitors are once more at loggerheads over the renewed petition of the Callery v Gray case to the House of Lords by insurer Norwich Union.The House of Lords has given Norwich Union leave to appeal subject to representations made by the claimant.Andrew Twambly, a partner with Manchester-based Amelans, who acted for the claimant in the original action and continues to act, filed objections shortly before Christmas.Mr Twambly said he hoped that if the appeal goes ahead, it will be expedited by the House of Lords.

The delay and further uncertainty in the market suited insurers, he said.Norwich Union's case will revisit: l The prematurity issue - insurers maintain that claimants should not be allowed to recover after-the-event policies taken out beforeproceedings are issued;l The level of the success fee for simple road accident cases, determined at 20% by the Court of Appeal, and;l Whether insurance policies should cover the cost of claimants' counsel fees in addition to those of defendants.Mark Harvey, secretary of the Association of Personal Injury Lawyers, said he was disappointed by the appeal.

He said the Court of Appeal decision had already given clear guidance on conditional fees for his members.Mr Harvey - who has just written a book on conditional fees based on the Callery judgment - said that 'with the case going back to the House of Lords, even if it is expedited, it will require another three to six months.

During this time there will be a logjam, with insurers refusing to pay solicitors' success fees and full damages'.Tim Wallis, president of the Forum of Insurance Lawyers, said: 'If we are invited to do so, we will put in submissions for the appeal on behalf of insurance lawyers.' He said it was unfair to blame Norwich Union for any uncertainty in the market as a result of seeking an appeal.Jeremy Fleming