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Claimant Victory in Supreme Court Costs Decision Reverses Previous QOCS Ruling

Judge in court

(Estimated reading time: 1 minute, 41 seconds)

The Ho v Adelekun hearing at the Supreme Court has taken place and the decision has finally been handed down. This judgment has resulted in a major claimant victory.

It reverses the decision in Howe v MIB and reinforces the original intention of the QOCS regime; this being that, in cases where a Part 36 offer has been accepted out of time or unbeaten at trial, the defendants right to recover their costs is capped at the value of the damages that they pay to the claimant.

It was agreed previously between the parties that Ho be awarded the costs of her successful appeal, reported to be £48,600. The crux of the matter was whether she was able to set off her costs entitlement against her liability for Adelekun’s £16,700 costs of the claim.

Previously in April 2020 the Court of Appeal had decided that, but for it being bound by the prior decision in Howe v Motor Insurers’ Bureau (heard 29-30th  June, announced 6th July 2017), it would have agreed that a defendant should be able to recover costs awarded, but only by set-off against damages and interest; the claimant’s liability should not extend further to consume their pre-offer costs.

In recent years defendants in personal injury and clinical negligence matters have relied on the case of Howe v Motor Insurer Bureau [2017] EWCA Civ 932, to recover greater costs after successfully defending a Part 36 Offer. In this case, Lord Briggs and Lady Rose considered that the Court of Appeal was right to doubt whether Howe was correctly decided.

Here at Temple we have always maintained that the intention of the Jackson reforms was only ever to allow limited cost shifting relating to damages and not pre-offer costs. We have protected our policyholders interests by providing continued indemnity during this period of uncertainty and welcome this decision. It is one which will help us maintain access to affordable, high quality ATE insurance cover.

If you would like to discuss the implications of this decision in more detail, please do call me on 01483 514804 or send an email to matthew.best@temple-legal.co.uk.

Matt Best

Matthew Best

Senior Underwriting Manager
Read articles by Matthew Best

Matthew Best

Matt has an insurance background and joined Temple in July 2011 having worked for 4 years in a leading insurance company where he was dealing with personal injury work.

Matt’s experience allows him to undertake a key role in Temple’s ATE insurance personal injury and clinical negligence teams. He also participates in the assessments of delegated schemes that Temple provide with the objective of helping our customers make the most beneficial and appropriate use of ATE insurance.

He has started studying for this CII exams which he will sit in the near future, which he will then use to develop himself, further into the company in order to provide Temple’s customers with the excellent service they expect.

 

Read articles by Matthew Best