The contractual relationships

In Greene Wood & McLean LLP v Templeton Insurance Ltd [2009] EWCA Civ 65 the Court of Appeal considered the operation of after-the-event (ATE) insurance, and in particular whether solicitors who obtained such policies for their clients and then paid the costs for the clients had any form of action based on breach of contract. The issue arose in the context of an application for permission to serve proceedings outside the jurisdiction.

GWM: the facts

The arrangements in this case were entered into in order to facilitate claims by miners who had contracted chronic obstructive pulmonary disease and vibration white finger. Compensation schemes were established by the Department of Trade and Industry, and claims were made under those schemes. A number of miners employed solicitors to advance their claims, while others were represented by trade unions. Problems arose between the miners and their advisers, and resulted in GWM being instructed by a number of miners to bring claims against solicitors and unions. GWM, on behalf of its clients, obtained after the event insurance from Templeton, an insurer domiciled in the Isle of Man, so that the proceedings could be pursued.