Claim that surgery and insurer colluded in PIP implants settlement rejected (AB and CD v Transform Medical Group and Travelers Insurance)

Claim that surgery and insurer colluded in PIP implants settlement rejected (AB and CD v Transform Medical Group and Travelers Insurance)  

Roddy Dunlop QC, of Axiom Advocates, examines an Outer House decision in the PIP breast implants case that the pursuers, who were women who had undergone breast augmentation surgery carried out by surgeons engaged by the defender cosmetic surgery business, had not established that a settlement between the defender and its insurer, the minuter, before the defender went into administration had been entered into collusively and in bad faith with the intention of defeating or reducing claims that the minuter would otherwise have had to meet.

AB and CD v Transform Medical Group (CS) Ltd and Travelers Insurance Company Ltd [2020] CSOH 3

What are the practical implications of this case?

This was a very rare—indeed, in Scotland, unprecedented—attempt by third parties to unravel a settlement struck between an insured and its insurers. Building on obiter dicta from a case in England in the 1980s (Normid Housing Association Ltd v Ralphs [1989] 1 Lloyd's Rep 265), Lord Tyre accepted that it might be possible for a third party to challenge such a settlement, if it were arrived at collusively in an attempt to defeat what would otherwise be the third

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About the author:

Zahra started working as a paralegal at Lexis Nexis in Banking and Insolvency teams in April 2019. Zahra graduated with a 2.1 honours in a BA French and Spanish, completed the GDL at BPP University and is seeking some experience before commencing the LPC. She has undertaken voluntary work for law firms in London, Argentina and Colombia.