Kelly & Anor v Black Horse Ltd [2013] EWHC B17 (Costs) (27 September 2013)

Posted on Thursday, October 24th, 2013

This was a PPI claim which went to trial and was won by the Claimants.  It was ordered that the balance of the outstanding loan of £5,202.63 be written off by the Defendant, that the Defendant was to re-pay the sum of £6,000.00 to the Claimants and that the Defendant should pay 70% of the Claimants’ costs which were subject to detailed assessment if not agreed.  At the detailed assessment on 01/08/13, most of the issues were dealt with, however, the main issue was whether the Claimants were entitled to recover their ATE premium in full, which was £15,900, including IPT at 6%.

Following an analysis of the reasonableness of the ATE premium, by calculating the ‘burn premium’ and then increasing the figure by an appropriate percentage to reflect brokerage and profit, Senior Costs Judge Hurst found that the premium claimed was wholly disproportionate.  No evidence was given to him as to the information which was given to the ATE insurers to enable them to rate this policy.  It was reasonable for the Defendant to pay 25% of the premium claimed which was £3,975 including IPT.

For the full Judgement please click here.

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