What are some of the potential risks associated with ATE insurance policies?
2.5.1 Recovery of the premium fee from the losing defendant: One risk in taking out an ATE Insurance policy is that, if the claimant obtains judgment in his favour (such that the premium becomes payable), there could nonetheless be circumstances whereby the claimant might not be able to recover the ATE Insurance premium in full from the losing defendant. This might happen, for example, (i) because the Costs Judge at a detailed assessment of costs hearing decides not to order the defendant to pay the full cost of the premium and/or (ii) because the defendant cannot afford what he is ordered to pay to the claimant.… Read More In such circumstances the claimant would still remain legally responsible to ensure the cost of the ATE Insurance premium is paid to the insurer. The insurer could potentially seek payment of the premium from the claimant. This is because, by having obtained judgment in the claimant’s favour, the case would usually be deemed to have been a success as defined under t
