Risk to insurers of non-party costs orders
This blog post considers a judgment that will be of interest both to insurers and those who represent them.
In Travelers Insurance Company Ltd v XYZ the court used its discretion to make a non-party costs order against an insurer in relation to claimants’ costs in a group litigation situation. The court has a discretion under s51 Senior Courts Act to make a non-party costs order, including that a defendant's insurer pay a claimant’s costs, in exceptional circumstances. In the Travelers case, solicitors acting on a joint retainer for insurers and insured had not disclosed to certain claimants that their claims were not insured.
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