Where an individual or company goes into insolvency, the general rule is that this stops the limitation clock for claims against that party. But what is the position where, as a result of the insolvency, the claimant acquires the right to sue the insolvent defendant’s liability insurer directly under the Third Parties (Rights against Insurers) Act 2010? Does limitation continue running for that claim against the defendant or its insurer?
In FSCS v Larnell [2005] EWCA Civ 1408, the Court of Appeal held that under the previous Act (the Third Party (Rights against Insurers) Act 1930) the limitation period stopped running against both the insured defendant and their insurer when the defendant went into liquidation. But in a series of county court decisions, it was held that the position changed under the 2010 Act. Appeals to the Court of Appeal against two of those decisions were heard in March but were regrettably abandoned when the parties settled and the appeals were withdrawn on the second day of the hearing.
In this Gatehouse Chambers Brew, Daniel Gatty, Tom Bell and Will Golightly will discuss the issues raised, but left unresolved, by the abandoned appeal and their consequences for claimants, defendants and insurers.
Please register your interest via email: events@gatehouselaw.co.uk
