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ARTICLE · 01 DECEMBER 2017

Can After The Event Insurance Defeat An Application For Security For Costs?

Mishcon de Reya LLP
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The question has recently come before the Court of Appeal for the first time in Premier Motorauctions Ltd (in liquidation) v Pricewaterhousecoopers LLP [2017] EWCA Civ 1872.

United KingdomInsurance
Ralph Fearnhead
Ralph Fearnhead
Gavin Lubczanski
Gavin Lubczanski

The question has recently come before the Court of Appeal for the first time in Premier Motorauctions Ltd (in liquidation) v Pricewaterhousecoopers LLP [2017] EWCA Civ 1872.

The Issue

When faced with an application for security for costs, is showing that you have ATE insurance sufficient to avoid being ordered to pay it?

The Background

The Claimants are a group of companies in liquidation. The joint liquidators of the companies brought proceedings against PWC and Lloyds Bank alleging that they had conspired together to take control over the companies through unlawful means, forcing their sale at an undervalue for the benefit of the bank. The liquidators are claiming losses of £45million - £54 million.

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