Liability insurance: defence costs

Legg and Others v Sterte Garage Ltd and Another [2016] EWCA Civ 97 raised the question of exactly when an insurer defending a claim is required to pay the costs of the successful claimant. Two separate questions were discussed in Legg: could an order be made against the insurers under section 51 of the Senior Courts Act 1981 even though they were not parties to the proceedings; and, if not, did the policy cover the costs of the assured for a successful claim against it so that they could be recovered from the insurers under the Third Parties (Rights Against Insurers) Act 1930?

Legg : the facts