Recoverability of ATE Premiums in Defamation Claims – still here!

Tuesday 20 February 2018

You will be aware of the demise of recoverable ATE premiums in most types of claims since post LASPO in April 2013, which thereafter saw stripping of recoverable premiums on insolvency matters from April 2016!

However, in defamation cases, the premiums still remain fully recoverable from the losing party and not borne out of the client’s damages. Thus, as often happens in defamation cases, the damages can be quite modest and claimants are not always seeking a monetary award, which would not make a claim suitable for Third Party Funding, but would still make it eligible (subject to being a meritous case) for After The Event Insurance.

The courts may still apply a test of ‘reasonableness’ to the costs, ensuring that they are proportionate both to the probability of cover being required and to the quantum of any liability. See Kelly v Black Horse [2013] EWHC B17 (Costs).

Maxima have successfully placed many defamation cases within the insurance industry. Should you wish to discuss a case, please get in contact with us.

Where there is a monetary award sought, should your clients require third party funding to pursue a defamation case, please speak to our team of specialists.