Decision a game-changer for ATE insurance

A game-changing Superior Court decision paves the way for plaintiffs to recover the cost of their after-the-event (ATE) insurance premiums and level the playing field in personal injury actions, says Nick Robson, managing director of JusticeRisk Solutions (JRS).

The case involved a personal injury action in which the plaintiffs recovered just under $70,000 in damages.

At a costs hearing, the defendant argued it should not have to pay for the plaintiffs’ disbursement for cost insurance, but Justice David Salmers sided with the claimants.

“Without costs insurance, the fear of a very large adverse costs award would cause many plaintiffs of modest means to be afraid to pursue meritorious claims. It is in the interests of justice that plaintiffs be able to pursue meritorious claims without fear of a potentially devastating adverse costs award,” Salmers writes in his endorsement.

“It’s a huge development, and great news for access to justice,” Robson tells AdvocateDaily.com, explaining that until this decision, plaintiffs were expected to carry the costs of ATE insurance themselves.

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