Is ATE Insurance About To Change The Litigation Landscape In Ireland?

Greenclean Waste Management Ltd v Maurice Leahy p/a Maurice Leahy & Co Solicitors

On 5 June 2014 Judge Hogan of the Irish High Court¹ held that a "plaintiff's ATE insurance policy does not amount to either maintenance or champerty". This brief statement could have a significant impact on the future of litigation in Ireland.

Background

After the Event ("ATE") insurance is generally provided by the insurance industry to cover a plaintiff's potential exposure to his opponent's legal costs if the plaintiff loses either litigation or arbitration and is ordered to pay his opponent's legal costs. As such, it protects plaintiffs from this potential exposure in return for a premium. The premium is usually only payable if the plaintiff is successful. As the name suggests, the person or company takes out the policy "after the event" which gives rise to the claim has occurred.