Counting the cost – Court of Appeal finds ATE policy is not sufficient security for costs

In the highly anticipated first appellate court decision focussing on the adequacy of ATE policies for security of costs, the Court of Appeal in Premier Motorauctions Ltd & Ors v (1) PricewaterhouseCoopers LLP (2) Lloyds Bank PLC [2017] EWCA 1872 overturned the High Court decision and held that the Claimants’ ATE policy without anti-avoidance provisions was not sufficient for the Defendants’ security of costs. The Claimants are now required to put up £4million to continue with the claim – a useful reminder that security for costs applications can be a powerful weapon for defendants in litigation.

Andrew Jones discusses this case further here.