The '£400 Club' Loses Its First Battle - Andrew Cullen, Barrister
17/04/16. The first-instance judgment of District Judge Phillips sitting in Cardiff last month in Iqbal & EUI Ltd vs Leake & JC&A Solicitors; Smith & EUI Ltd vs Naylor & JC&A Solicitors; Pitts & EUI Ltd vs Stock & JC&A Solicitors, could allow insurers to claw back millions of pounds. The judgment concerned three combined cases in which personal injury claims had been made against Admiral.
Under the 2010 RTA protocol, which subsequently was amended in July 2013, a fee of £480 (inclusive of VAT) became payable to the Claimant solicitors on admission of liability. There was no requirement for the Claimant to progress the claim to Stage 2.This occurrence became known in the market as the ‘£400 Club’. Recognising the potential inequity in the process, the rules were subsequently amended in 2013 so that Stage 1 fixed costs only became payable on receipt of the Stage 2 payment pack and medical report.
The cases were commenced under the 2010 RTA protocol, and Admiral admitted liability in each case. Admiral therefore paid £480 at Stage 1. However, all 3 cases did not subsequently proceed to stage 2, and therefore the issue before the Court was whether Admiral was entitled to the £480 that was paid at Stage 1...
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