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Supreme Court rules insurance premium not a recoverable cost, Andrew Smith QC for appellant

McGraddie v McGraddie

In a judgment of the Supreme Court on Costs, it was held that the insurance premium paid by a successful Appellant was not recoverable as a valid cost. The Supreme Court expressed regret that they felt unable to do so, but that the rules did not permit that recovery. The Appellant obtained a costs award against the Legal Aid Board, and sought an order that the premium (of £40,000) should be a validly recoverable expense.

Lord Neuberger, with whom Lady Hale and Lord Reed agreed, considered that although justice demanded that it was recoverable, and that it was reasonable for the appellant to have taken out that insurance, because of the lack of a rule which permitted the recoverability, the order would not be made.

It is clear that this decision was one which troubled the Supreme Court. Whether the rules are changed in the future remains to be seen.

Andrew Smith QC appeared for the Appellant in the principal appeal, and in preparing and presenting the written submissions for the Appellant.

A link to the judgment can be found here.



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