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"Edmondson failed to protect itself by working on a funding arrangement that did not prevent direct settlements, and included no provision for costs if settlements were made."

The insurer cannot have known this at the point of settlement; as far as they would have been aware the injured party could have been personally liable for any costs.

Also, and though likely next to worthless, contacting a represented party direct is in breach of the Claims Portal Ltd Behaviour Committee Guidance and the ABI's code of practice on third party assistance.

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