MURPHY AND MURPHY V YOUNG & COS BREWERY SUN ALLIANCE & LONDON INSURANCE PLC

(1997) 6 Re LR 113

Court of Appeal

Before Lord Justice Butler-Sloss, Lord Justice Philips and Sir John Balcombe

Costs - Non-party - Legal expenses insurance - Unsuccessful plaintiff bringing action through legal expenses insurance policy - Limit of indemnity reached under policy - Application by successful defendant for costs against insurers - Whether legal expense insurance in public interest - Whether order under Supreme Court Act 1981 sect 51 that non-party pay costs should only be justified when exceptional circumstances made such an order reasonable and just - Whether existence of legal expenses insurance with limit of cover that had been exhausted made it reasonable or just to order insurer to pay costs of adverse successful party.