Court of Appeal reminds insurers of cost risk in defending insureds

The Court of Appeal has upheld a decision to make a non-party costs order against an insurer who defended its insured in proceedings: Legg and others v Sterte and Aviva [2016] EWCA Civ 97.

The case provides a reminder of the risk insurers face when defending proceedings on behalf of an insured. It also summarises the key factors the Court will consider when deciding whether or not to make such an order against an insurer. In this case, the decisive factor was whether or not the insurer was acting exclusively or predominantly in its own interests. Click here to read our insurance and reinsurance disputes team's e-bulletin on the decision.