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Jonathan Luke Rogers v Merthyr Tydfil County Borough Council [2006] EWCA Civ 1134

A party who had an after-the-event insurance policy with staged premiums should have informed its opponent of that fact and should have set out the trigger moments when the second or later stages would be reached.

11 August 2006

The appellant (R) appealed against a decision allowing the appeal of the local authority from an assessment of costs. R had been provided with after-the-event (ATE) insurance cover by an insurance company (D), who had effectively brought the instant appeal, in relation to a claim for damages against the respondent local authority who had been found liable. R’s solicitor had chosen a policy with a three-stage premium as being the most appropriate for his client's needs. The local authority had objected to the high cost of the third-stage premium of £4,860 plus insurance premium tax, when compared to the agreed damages of £3,000. The judge had reduced the ATE premium payable to £900 on appeal having relied on information in a publication of “Litigation Funding” when making his decision. On the production of further evidence a second appeal was allowed in the form of a rehearing. The main issues for determination were: (1) an understanding of the proper approach to proportiona...

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