Levelling The Costs Playing Field

The Court of Appeal overturns the High Court decision concerning ATE insurance policies lacking anti-avoidance provisions as adequate security for costs.

In an important recent decision in Premier Motorauctions Limited (in liquidation) et anr –v- PricewaterhouseCoopers LLP et anr [2017] EWCA Civ 1872, the Court of Appeal overturned an earlier High Court decision and granted the Defendants' application for security for costs holding that the after-the-event ("ATE") insurance policies taken out by the insolvent Claimant companies did not provide the Defendants with sufficient costs protection in circumstances where the policies were avoidable for material non-disclosure and misrepresentation.