Otherwise known as “hold harmless” policies. This is an arrangement between a solicitor and a broker or underwriter whereby either no premium will be paid or a nominal sum is paid on the understanding that no claim will ever be made on the policy, even if an adverse costs order is made.

On the successful conclusion of the case the solicitor recovers his “outlay” for the policy premium from the other side.

This is likely to be considered a criminal offence under Section 15 Theft Act 1968 as well as a breach of Rule 1 of the Solicitors Practice Rules and Principle 17.01 which requires solicitors to act fairly in their professional capacity and not fraudulently or deceitfully.

Case Speccing

The case of Garbutt v Edwards