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What next for ATE?

The funding implications of 1 April vary widely ?for different areas of law. James Delaney looks at ?ATE across the board

15 February 2013

After all the hype, lobbying, debate and publicity, 1 April looms closer. From then ATE premiums will be irrecoverable for most forms of litigation but the impact of these changes is dictated mainly by the area of law in question.

Arguably commercial and non-injury litigation may be hardest hit. Eradication of premium recoverability applies across the board so a client incepting a policy before 1 April can recover their premium, whereas those incepting policies after 1 April cannot. They will have to pay the premium themselves, either upfront or via their damages recovery (with a deferred premium option). This will render some cases uneconomic as the claim value may simply be too low to allow for the cost of an ATE premium or success fee.

The commercial ATE market will continue to exist post-April. While the rules have changed over recoverability, the risk of an adverse cost order are ever prese...

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