An organisation provided a service to people in the care of a local authority.
The organisation took out an insurance policy to cover litigation costs in circumstances where there was a significant threat to the viability of the company.
When the local authority threatened to withdraw all its operations from the client, a process of litigation, paid for by the insurance policy, was started.
Without notice and shortly before trial, the insurer changed its stance and withdrew funding, resulting in an adverse court decision that caused the client a significant loss. The client wished to challenge the insurer and seek to recover the losses that flowed from its change of position. In addition, the client also wanted to challenge the solicitor who acted for it and withdrew its services when the insurer stopped paying.
We have assisted the client with the ramifications of the decision and arranged a suitable platform upon which to pursue its claim. Under the Escalate process, we will target the insurer and the solicitor in circumstances where the client would otherwise have had no opportunity of making a recovery.
Armstrong Watson has been given the rights to use this case study by Escalate, an award-winning, accountancy-led commercial dispute resolution service.