Court of Appeal continues to support the decision in Callery v Gray

The Court of Appeal has held that it continues to be reasonable to take out after-the-event insurance at the same time as solicitors are instructed in clinical negligence claims, and the premiums were in principle recoverable where cases were settled without the issue of proceedings. In Peterborough & Stamford Hospitals NHS Trust v McMenemy: Reynolds v Nottingham University Hospitals NHS Foundation Trust [2017] EWCA Civ 1941 , the court concluded, on reviewing the situation, that there was no reason to depart from the policy decision in Callery v Gray (No 1) [2001] EWCA Civ 1117; [2001] Lloyd’s Rep IR 743 and examine the reasonableness of taking out after-the-event insurance on a case-by-case basis, despite the introduction of qualified one-way costs shifting, the Courts and Legal Services Act 1990 s58C and the Recovery of Costs Insurance Premiums in Clinical Negligence Proceedings (No 2) Regulations 2013 (SI 2013 No 739).