Supreme Court third party capture ruling opens doors for additional claims

Solicitors should consider taking action against insurers who settled personal injury cases directly with their clients without paying their fees.

The message to members from the Law Society comes after the Supreme Court upheld the Court of Appeal ruling that Haven Insurance should pay Gavin Edmondson Solicitors what it was due.

Law Society president Joe Egan said: “The Society intervened in this case because we believed this was an important point of principle for the profession.

“This judgment is good news for our members. It confirms that solicitors will have a remedy to recover their costs in these circumstances where an insurer has tried to avoid payment by going to the claimant direct.

“It will also be good for consumers as it reduces any incentive for insurers to go directly to clients, cutting solicitors out and therefore losing the protection a solicitor brings in representing the client in a claim. The case is also a useful confirmation given the expected broader application of fixed recoverable costs regimes in the future.

“Members may now wish to consider whether they have any claims against insurers who took action similar to Haven.”

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