Litigation Recent Decisions 12/03/96

Entitlement to fees and costs indemnity insurance moneys

Legal Protection Group v (1) Secretary of State for Trade and Industry; (2) Official Receiver; (3) Philip Adrian Travers; (4) Alsop Wilkinson (1996).

Ch.D (Rimer J) 1/3/96.

Summary: Law firm which acted for an insolvent company in resisting a winding up petition in the belief it would be remunerated from a legal costs indemnity policy held to be entitled to nothing.

Application by the plaintiff, a legal fees insurance intermediary, for the resolution of competing claims to the benefit of the entitlement of Music Point ('the company'), to an indemnity under an indemnity cover policy underwritten by Lloyds underwriters and Sun Alliance and London Insurance. The policy provides cover in respect of the costs and legal expenses of litigation. The plaintiff's role is neutral. It acknowledges liability to make payments and asks for the court's direction as to what, if any, payments it should make and to whom. Claims are made by the Secretary of State for Trade and Industry and the

Official Receiver who are the first and second defendants. The competing claim is made by the fourth defendant, the company's solicitor. The third defendant makes no claim.