Costs' recovery against the claimant? Is it a matter of empty pockets?
The starting point is to unravel the mystery of claimant funding
by ascertaining whether he/she is on a CFA?. If so;
1.) Does the CFA have ATE?
2.) If so what are the policy limits and what does the policy cover?
3.) What happens if the claimant breaches his/her ATE policy terms?
4.) What about BTE funded claimants?
5.) What are the tests that BTE funders apply when deciding whether to continue supporting claims?
6.) What happens when the claimant’s solicitors have used up some or all of the available BTE?
This will be even more relevant post implementation of Lord Justice Jackson’s recommendations as ATE may be less popular if the policy premium is not recoverable from the unsuccessful defendant. What then will be the practical implications for BTE insurers and claimant’s solicitors?
Our approach is to start at the beginning by establishing at pre action protocol stage the exact basis upon which the claim is funded. There is certain information the claimant need not disclose but plenty that you are entitled to request.
Once you understand the basis of funding, and the extent to which the claimant’s potential costs' liability to you is underwritten, you are on the first step of the ladder to protect underwriters' costs' position. You are also on the way to both parties giving careful consideration to the other’s costs and their litigation risk.
There are a number of other steps you can take to protect underwriters’ position once the basis of funding is known. Why don’t you come along to our seminar on 20 May 2010 in London where our speakers will address all of these thorny questions?
For more information on our seminar please e-mail us at info@dgbsolicitors.co.uk marked "Seminar 20 May 2010".