0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Piria v Ayling

25 February 2003
The issues

ATE Premium – champerty – reasonableness – premium size – simple road traffic accident.

The facts

The Claimant had an RTA on 1st December 1997. The Claimant accepted £13,000.00 paid into Court on 3rd January 2002. When her costs were assessed, the Defendant objected to paying the ATE premium of £2,600.00 or nearly 20% of the damages recovered. The Claimant had entered into a contract of insurance on the 27th March 2001. The Insurer provided indemnity to a limit of £10,000.00. The premium was stated as being 20% of damages awarded.

The decision

The Agreement was not champertous. The essence of champerty lay as Lord Mustill had stated in Giles -v- Thompson in the temptation on the part of a party funding litigation to exaggerate the claim or suppress evidence. Here, in reality, there was no such danger as the Insurer was not in a position to interfere with the litigation.

2. The sum of £2,600.00 was excessive for an ATE Premium in what was a simple road traffic case. It was more than 25% of the limit of indemnity. There had been no submissions or evidence as to the availability of other suitable ATE policies. The Defendants however had conceded that the appropriate premium should now be no more than £350.00. That sum would be allowed plus IPT making a total of £367.50.

focus on...

Legal updates

Contingent loss in negligence claims

Contingent loss is relevant to limitation; specifically, the date at which a claimant’s cause of action accrues for the purposes of a claim in the tort of negligence (as many claims against professional advisers are framed).

View

Legal updates

Legal and regulatory monthly update - September 2019

The latest update covering delegated authority, insurance product development, the senior insurance managers regime, data protection, operational control frameworks, Lloyds market, and horizon scanning.

View

Legal updates

Kuoni referred to the CJEU by Supreme Court for clarification - possible impact on breach of contract, vicarious liability and assumption of responsibility claims for sexual abuse and assault

We were hoping to be able to give you some interesting insights following the judgment of X v Kuoni Travel Ltd but that will have to wait for another day.

View

Legal updates

The disappearance of LIBOR

Companies should undertake a comprehensive review and audit to identify those products and legacy contracts that are LIBOR-linked and carry out an in-depth risk assessment of discontinuation. Where possible, companies should look at appointing an individual to oversee the programme.

View

The content on this page is provided for the purposes of general interest and information. It contains only brief summaries of aspects of the subject matter and does not provide comprehensive statements of the law. It does not constitute legal advice and does not provide a substitute for it.

mailing list sign up



Select which mailings you would like to receive from us.

Sign up