Hot on the heels of the case of Adris v Royal Bank of Scotland
, we have today heard a rumour that a firm in the North West (we won’t narrow it down any more so as to protect the er, guilty) has been reprimanded by the SRA following one of their regional visits. The firm in question used to pick and choose which cases to insure with their After the Event Insurance provider (generally just the risky ones) leaving the remaining cases without any ATE Insurance cover. The SRA officer asked to see the solicitor’s letter to all clients who didn’t have any ATE Insurance or BTE Insurance which explained the financial risks the clients would face if the client lost (or failed to beat a Part 36 offer).
Guess what? There weren’t any.
The moral of this tale? If there is no definite BTE policy in place then take out After the Event Insurance straight away or write a very carefully worded letter to the client to tell them why you think they face no risks at all of adverse costs in any circumstances.
Box Legal Limited: After the Event Insurance Providers
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