ATE insurance premiums, CFAs, mesothelioma and clinical negligence claims—the Jackson reforms [Archived]
ATE insurance premiums, CFAs, mesothelioma and clinical negligence claims—the Jackson reforms [Archived]

The following PI & Clinical Negligence practice note provides comprehensive and up to date legal information covering:

  • ATE insurance premiums, CFAs, mesothelioma and clinical negligence claims—the Jackson reforms [Archived]
  • Position pre-1 April 2013
  • Position on or after 1 April 2013
  • Mesothelioma claims—insurance premiums and success fees
  • Clinical negligence claims—insurance premiums only
  • Is it still possible to take out a CFA and ATE policy after 1 April 2013?

Position pre-1 April 2013

ARCHIVED: After-the-event (ATE) insurance premiums and success fees continue to be recoverable where the policy or CFA was entered into before 1 April 2013. This position was challenged in Coventry when the Supreme Court considered whether the recovery of success fees and ATE premiums from unsuccessful defendants breached a right to a fair trial under art 6 of the European Convention on Human Rights (ECHR). After much debate and an adjourned hearing it was held that recovery did not breach the ECHR. For more information, see: Supreme Court—recoverable success fees/ATE Premiums do not breach Human Rights (Coventry v Lawrence).

See also Practice Note: Conditional fee agreements—success fees.

Position on or after 1 April 2013

With effect from 1 April 2013 and following implementation of Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPOA 2012), ATE insurance premiums are no longer recoverable from the losing party except for cases which fall into certain categories. LASPOA 2012 provided for the amendment of the Courts and Legal Services Act 1990 (CLSA 1990). LASPOA 2012, s 44 provided for the amendment of CLSA 1990, s 58A(6) so that a costs order may not require payment by one party (an unsuccessful party) of a success fee payable by another party (a successful party).

LASPOA 2012, s 46 provided for the amendment of CLSA so as to insert the following

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