Nicolaou v Cass (2017) Claim Number B04LV651 in the Liverpool County Court

This was a Clinical Negligence claim which settled for £250,000.00, costs were then to be dealt with. As part of the costs, the Claimant sought to recover an ATE Premium of £53,145.00 plus IPT, ARAG were the insurers in this instance.

The matter proceeded to Detailed Assessment on the 22nd August 2017, at which, some preliminary issues were decided. When the court came to consider the issue of the ATE Premium, District Judge Baldwin was persuaded by the Defendant that further evidence was required in order for the reasonableness of the ATE Premium to be determined.

The matter proceeded to a Hearing in November 2017, wherein a bundle of supplemental documents were supplied in support of the ATE premium. The Court however was not persuaded and disallowed the Second Stage of the ATE Premium. The reasoning behind the Court’s decision lies upon the Claimant and ARAG being unable to meet the burden of proof in relation to how Stage Two of the ATE Premium was calculated, for which the Claimant is ultimately responsible. District Judge Baldwin can be quoted:

“…the claim for the stage 2 element of the premium fails for lack of quantifiability.”

The ATE Premium was allowed in the sum of £4,950.00 plus IPT, almost £50,000.00 less than was being sought. No doubt this came an unpleasant shock to the receiving party and their representatives/insurer.

This case therefore serves as a reminder to ensure you can substantiate the level of an ATE premium claimed, as any doubt as to the same will be found in favour of the paying party on a standard basis assessment. Equally as important is that if ATE premiums are challenged, the ATE insurer is notified and invited to defend their premium.

Matthew Waring