After the event insurance: security for costs

The court has power under CPR 25.13 to order aclaimant to provide security for the defendant’s costs when the claimant isinsolvent and unlikely to be able to meet the defendant’s costs in the eventthat the claim fails.

In Premier Motor Auctions Ltd v PricewaterhouseCoopers LLP [2017] EWCA Civ 1872 the Court of Appeal has reversed the first instance judgment of Snowden J, [2017] Lloyd’s Rep IR 186, in which the judge adopted a generous approach to the acceptability of ATE insurance. The Court of Appeal has adopted a more cautious approach that gives greater weight to the possibility that the ATE policy may not respond to any claim for costs against the assured.