Senior Courts Costs Office

No.24 of 2006

Rodgers v Merthyr Tydfil County Borough Council [2006] EWCA Civ 1134

31 July 2006

Brooke, Laws & Smith LJJ

The claimants (in reality DAS Legal Expenses Insurers) appealed against the reduction to the ATE premium in a personal injuries claim settled for £3,105. The court allowed the appeal and restored the ATE premium of £5,103 (including tax) and gave approval to “staged” premiums that increase at particular trigger moments of which notice should be given to the opponent. In an annex Smith LJ expressed concern that there is little incentive for solicitors to look for best value in ATE insurance because the client will never have to pay the premium regardless of the outcome. Nor does the system provide any incentive for the claimants side to have a second and more rigorous look at the merits.