Posted by Gemma Ospedale, Partner
Claimant’s legal expenses insurance does not preclude award of costs
In Mardner v Gardner and others, the EAT has overturned an Employment Tribunal’s refusal to make a costs order because the Claimant had legal expenses insurance. It considered that the Claimant’s case fell squarely within the category in relation to which costs could be awarded but the Employment Judge refused to do so on the basis that the Claimant would not be out of pocket due to having legal expenses insurance funding. The EAT considered that this was irrelevant and was also contrary to public policy. It held that the paying party should not be able to avoid the costs consequences of their unreasonable conduct purely because the Claimant was the recipient of insurance which covered his costs.