Australian court decision provides much-needed clarity on claims
for misleading and deceptive conduct.
In the High Court of Australia, a professional indemnity insurer
has been ordered to pay the litigation costs of the successful
plaintiff, following an unsuccessful appeal conducted by the
insurer in the name of its insured.
The costs orders were made directly against the insurer in its
own right as an interested non-party to the proceedings and impose
an independent liability on the insurer to pay the costs, separate
to its obligations under the policy.
The decision extends the litigation risks faced by insurers
beyond the limits of the insurance policies they issue and
demonstrates that the courts are prepared to lift the mask of an
insurer influencing the conduct of litigation in the place of its
insured.
