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3 August 2001

THE LATEST judgement on 31 July 2001 concerning ‘no fee no win’ insurance paves the way for some 150,000 outstanding personal injury cases to be settled.

The Court of Appeal’s decision regarding the landmark Callery versus Gray case (see Notes for Editors) has confirmed that the ‘after the event’ insurance premium in the case was ‘reasonable’ and should be paid by the person responsible for the accident (or his insurers).

This will now mean that motor and liability insurers that were holding back on paying premiums to thousands of claimants in the UK pending the outcome of this case, will now have less reason not to allow cases to move forward.

The Callery Vs Gray case brings into the spotlight the Government’s access to justice programme, which gives claimants the right to recover their solicitor’s success fee from the person responsible for the accident (or their insurers). The Act also gives claimants the right to recover the premium they pay for ‘after the event’ insurance.

At an earlier judgement in this case the Court of Appeal confirmed:

• It is perfectly proper for a claimant to enter into a conditional fee agreement and take out ‘after the event’ insurance when he first consults a solicitor;

• It is not necessary for proceedings to have been issued to ensure that ‘after the event insurance premiums are recoverable;
• A success fee of 20% is acceptable in a "modest and straightforward" road traffic accident case.

The outstanding issue concerning the level of the ‘after the event’ insurance premium levied, was judged to be reasonable in so doing the Court of Appeal have accepted that premiums can be recovered notwithstanding that commissions are payable to third parties or that they include administrative costs.

Anthony Dennison, a partner at Manchester based law firm, Rowe Cohen, who acted on behalf of the After-the-Event Group in the case, said:

"Though the earlier judgement showed a clear indication that ‘no win no fee’ arrangements were here to stay, this latest decision in support of the level of premium levied in the Callery & Gray case is even more important.

"The effects of this judgement will be felt throughout the entire industry. More importantly, the 150,000 personal injury cases that have been awaiting the decision of this particular case can now be progressed.

"This decision by the Courts is extremely good news for personal injury claimants because it will enable people in the future to get justice a lot quicker. Claimants will be able to pursue their personal injury compensation claims following an accident, knowing that they won’t have to pay anything if they lose. It is also a very clear indication that the courts are supporting the Government’s "access to justice" programme, which again is great news for the public at large."

• In Callery versus Gray, Mr Stephen Callery (the claimant) was a passenger in a vehicle that was struck by another vehicle driven by Mr Gray. Mr Callery suffered fairly minor injuries.
• The After the Event Group represents interested parties from the insurance industry, including claims management companies, referral agencies, underwriters and underwriting agents.
• Rowe Cohen is a 14-partner law firm with over 200 staff and offices in Manchester and London.
• In 2001, the firm was ranked eighth by fee income in a league table of Manchester’s top legal practices.
• Partner expertise at the firm covers Legal Expenses Insurance (please ensure that this stays in this list) Commercial Litigation, Corporate/Commercial, Employment, Environmental, Human Rights, Insurance, Personal Injury, Police Discipline, Property, Trading Standards & Regulatory Offences.
• All partners are experienced in dealing with the media and are happy to give topical comment, a different opinion or simply background information.
• The firm acts as sole legal representative to members of several national trade bodies and associations, including the Police Superintendents’ Federation in England and Wales; the Federation of Small Businesses; the National Federation of Retail Newsagents; and the National Care Homes Association.

 For further information, please contact:

Anthony Dennison

Rowe Cohen - 0161 830 4600

Michele Samuels-Koch,

Rowe Cohen - 0161 830 4600

David Shirt

ruth@rmspr.co.uk - 0161 929 5194

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