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High-profile legal expenses insurer Litigation Protection, headed by Brian Raincock, is being sued for breach of contract by a former underwriter for allegedly failing to pass on insurance premiums.
Isle of Man-based Templeton Insurance, which withdrew as underwriter for Litigation Protection in July, claims Litigation Protection owes it nearly £15,000.
According to the writ, issued at Birmingham District Registry, Litigation Protection agreed to hold the premiums it collected in a trust account until they could be passed onto Templeton Insurance, run by Ralph Brunswick.
The writ says that from November Litigation Protection did not pass on the premiums to Templeton Insurance and kept it in the dark about the state of the account. "The plaintiff is unable to calculate monies due to it...but calculates the minimum sum due is £14,773," it says.
Litigation Protection managing director Raincock, who has played a prominent role in lobbying the Lord Chancellor's Department to increase the use of insurance-backed conditional fees, dismissed the dispute as a "spat". He said: "Ralph Brunswick and I have an argument - he wants the premiums, I want the money - but we are meeting and it is going to be resolved."
His company, represented by Jeffrey Green Russell, has issued a counter claim against Templeton Insurance. JGR solicitor Julie Madelin said: "They have fallen out on a personal basis and our client retains funds which Ralph Bruns-wick thinks should be put back."