Insolvency ATE – the end of premium recoverability
11th January 2016
The end of Premium recoverability
In a recent written announcement the Minister of State for Civil Justice (Lord Faulks QC) gave notice that “the Government has decided that no win no fee reforms should now be applied to insolvency proceedings. These provision will come into force for these cases in April 2016.” The change in effect abolished the recoverability of success fees and ATE insurance from losing defendants.
Whilst the announcement has been expected for some time, it will still come as bad news for Insolvency Practitioners, Creditors and Solicitors alike. Yet, it is not all doom and gloom. “What we have learnt from LASPO is that the need and desire for ATE insurance continues despite changes in premium recoverability.” Life (read litigation) must go on, as the saying goes.
In addition, it has already been announced that there will be a Post Implementation Review of the LASPO Act Part 2 reforms between April 2016 and April 2018. The Review, it was announced, will take place towards the end of that period.
April 2016 deadline
Of course, the announcement has created an April 2016 deadline to secure ATE insurance cover (with recoverable premiums). QLP have over 15 years of experience working with Solicitors and Insolvency Practitioners to provide ATE Insurance and Third Party Funding to support recoveries resulting from an Insolvency. For more information, please contact the team on 020 7626 0191.