Limitation—ATE insurance—Time when cause of action arising

Court of Appeal, Civil Division, Arden, Longmore and Lloyd LLJ,
12 November 2009

For the purpose of an insurer’s claim in professional negligence against solicitors’ conduct in respect of an after the event (ATE) legal expenses scheme, damage beings to accrue under s 2 of the Limitation Act 1980 (LA 1980) when the policies are issued; the policies are not purely contingent liabilities.

Charles Hollander QC, Tim Lord QC and Colin West (instructed by Reed Smith LLP) for the claimant. Sue Carr QC, Philip Jones QC, Ben Hubble QC, Helen Evans and Ruth Holtham (instructed by Kennedys) for the panel solicitors.

The proceedings concerned ATE insurance issued to clients of certain solicitors. The claimant was the assignee of the insurer’s rights. It contended that the solicitors were negligent in the initiation of those policies (vetting claims) and in conduct of the litigation on the client’s behalf , or the failure to notify