LEI : Pitfalls For The Unwary

In recent years it has become more difficult for legal expenses insurers to avoid making payments under policies but as high profile actions involving schemes such as TAG have shown, LEI Insurers are now looking to recoup losses paid out by bringing claims against solicitors. As more and more claimants in personal injury and also commercial disputes are now looking to LEI as a way of funding litigation it is worth looking again at the potential pitfalls for solicitors.

Last year, AXA, as alleged assignee of NIG, issued proceedings against 89 solicitors firms alleging that they acted in breach of duty when they conducted thousands of claims funded by LEI insurance. AXA claim that NIG, as LEI insurer was owed 2 duties of care by the defendant's solicitors as follows: