What is the effect of an After the Event ("ATE")
insurance policy on an application for security for costs? The
Court of Appeal considered this question for the first time in Greenclean Waste Management Ltd v
Leahy [2015] IECA 97, where a "hopelessly
insolvent" company was seeking damages against its former
solicitor for professional negligence.
What is ATE Insurance?
ATE insurance enables plaintiffs to insure against the risk of
having to pay a defendant's legal costs, and cover their own
outlay, in the event that they lose. The cover is taken out after
the dispute has arisen and the premium is usually only payable if
the plaintiff's claim is successful.
As we reported last July, the High Court in
Greenclean upheld the legality of an ATE insurance policy for the
first time in this jurisdiction, finding that it does not offend
against the torts of maintenance or champerty. Maintenance is the
improper funding of litigation by somebody who has no
