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28 February 2014 / Alison Padfield
Issue: 7596 / Categories: Features , Commercial
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Hobson’s choice?

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Alison Padfield considers the limits on the freedom to choose a lawyer

The freedom to choose a lawyer under a policy of before the event (BTE) legal expenses insurance is expressly set out in reg 6 of the Insurance Companies (Legal Expenses Insurance) Regulations 1990 (SI 1990/1159). The right is to choose a lawyer “to defend, represent or serve the interests of the insured in any inquiry or proceedings” (reg 6(1)), and there is also a right to do so at an earlier stage if a conflict of interest arises between the insurer and the insured (reg 6(2)). The regulations implement Directive 87/344/EEC, and reg 6, which requires the freedom to be expressly set out in the policy of legal expenses insurance, essentially reproduces the wording of Art 4 of the directive. Some aspects of the freedom have been considered in a series of recent cases, but important issues remain unresolved.

Does the freedom provide effective protection?

The freedom is to choose a lawyer in connection with “proceedings”. Most insureds would no doubt anticipate that

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