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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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Constantine Law—Anita Vadgama

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NEWS
NLJ's latest Charities Appeals Supplement has been published in this week’s issue
The treasury has sought to reassure the legal profession over concerns about cost, bureaucracy and independence when the Financial Conduct Authority (FCA) takes over regulation of anti-money laundering compliance
One out of two barristers has come under pressure from clients to act unethically, according to the results of this year’s Barristers’ Working Lives survey
The Court of Appeal has held the Competition Appeal Tribunal (CAT) was wrong to set aside a Competition and Markets Authority (CMA) decision on unfair pricing of phenytoin, an epilepsy drug
A flagship employment law reform is due to come into effect on 1 July, extending unfair dismissal rights to employees after six months in their job instead of two years
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