Welcome to Box Legal’s Monthly Round-Up!

As summer gets into full swing, the legal landscape continues to develop. Plus, a reminder of how ClaimSafe continues to make ATE simple. Let's take a look at some recent news stories.

• Was the court right to limit the success fee?
• Should the ATE premium have been disallowed?

What the Appeal Court Said:

Following West v Stockport NHS Foundation Trust (2019), the reasonableness of ATE insurance isn’t case-specific and should be broadly assessed (Para. 44).

The lower court was wrong to conclude ATE cover was unnecessary (Paras. 46–47).

Even with QOCS protection, litigation risk remains—from Part 36 offers to disbursements and second opinions (Para. 48).

ATE provides crucial protection beyond just adverse costs.

Allowing a success fee but denying the ATE premium is inconsistent (Para. 52).

Outcome: The appeal succeeded. The claimant’s solicitors were entitled to recover the full success fee and ATE premium—capped at 50% of the damages (£1,125).

Why This Matters: This decision provides reassurance for firms handling child claims, confirming that ATE premiums are generally recoverable, even in modest-value cases. It reinforces ATE’s legitimacy as a risk-management tool.

➡️ We offer tailored ATE cover specifically designed for personal injury and child claims. Get in touch to learn more.

Court of Appeal Clarifies Enforceability of LFAs Post-PACCAR

In a significant ruling, the Court of Appeal has upheld the enforceability of litigation funding agreements (LFAs) that calculate funders’ returns as a multiple of their investment, rather than as a percentage of damages. The Court also confirmed there is no issue with LFAs that include a percentage-based return clause, provided it only activates once such arrangements are “enforceable and permitted by applicable law.”

The decision stems from four conjoined appeals involving Sony, Visa, Mastercard, and Apple—each challenging amended LFAs approved by the Competition Appeal Tribunal (CAT) in light of the Supreme Court’s 2023 PACCAR ruling. That landmark decision classified certain LFAs as impermissible damages-based agreements under section 58AA of the Courts and Legal Services Act 1990.

Though the CAT had considered the appeals unlikely to succeed, it granted permission due to the broader need for clarity in the wake of PACCAR. The Court of Appeal’s judgment provides crucial guidance amid ongoing uncertainty, especially after the previous government's legislative response was shelved due to the general election. The Labour government has since deferred action pending the Civil Justice Council’s upcoming review of litigation funding.




Unclaimed Estates List Taken Offline Amid Major Probate Fraud Scandal

The government has temporarily removed the official list of unclaimed estates from the Bona Vacantia website following alarming reports of widespread probate fraud. A notice posted states: “We have temporarily removed the unclaimed estates list from our website. Further details will follow as soon as possible.”

This action comes in the wake of a BBC investigation that uncovered mounting evidence of a criminal network exploiting weaknesses in the probate system to commit will fraud, allegedly stealing millions from the estates of deceased individuals. Serious tax fraud is also suspected.

The scandal has sparked renewed scrutiny of the push toward digitalisation within probate services. Sir Bob Neill, former chair of the House of Commons Justice Committee, told the BBC that an "over-eagerness" to digitise the system may have helped enable the fraud.

One reported case involved two sisters identified as heirs by Anglia Research Services, only for a probate application to be derailed when a Hungarian man presented a suspicious will naming himself sole executor and beneficiary as a “dear friend” of the deceased.
 

In the high-stakes world of contentious probate, emotions can run high and risks even higher. That’s why ClaimSafe After the Event Insurance offers a lifeline, providing your clients with financial security and reassurance during what can be a profoundly difficult time.

Whether the dispute concerns forgery, undue influence, or a poorly drafted will, our cover spans the full spectrum of contentious probate claims, including:

• Financial provision disputes
• Imperfect drafting/execution
• Forgery and fraud
• Lack of testamentary capacity
• Undue influence
• Rectification
• Estoppel

Tailored Protection, Thoughtfully Delivered

Standard premiums are available for claims under the Inheritance (Provision for Family & Dependants) Act 1975, calculated on a banded scale according to estate size. For larger estates or more complex claims, we offer bespoke premium solutions, designed around the unique contours of each case.

ClaimSafe ATE Insurance isn’t available off the shelf, it’s a specialist product for solicitor departments managing a significant volume of insurable cases. If that sounds like you, we’d love to explore how we can support your practice and your clients.

Let’s Talk. Reach out to us to learn more and see if ClaimSafe is the right fit for your firm.

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