14.10.2010Dredger “Kamal XXVI” & the Barge “Kamal XXIV” (The Owners And/or Demise Charterers of) v “Ariela” (Owners of the Ship) and Catlin (Five) Ltd. and Others  EWHC 2531 (Comm)
Key issues: disclosure, fraud, High Court, non-party costs orders
The main action was a shipping case. The Claimant’s claim was dismissed on the grounds of fraud and the Defendant sought costs.
The Claimant had not paid the costs which they were ordered to pay and so the Defendants sought an order for costs against the Claimant’s Insurers under s. 51(3) Senior Courts Act 1981 on the grounds that they funded the action and instructed the solicitors who dealt with the claim. The Defendants sought disclosure of the retainer between the insurers and Solicitors, which the Insurers said were covered by privilege.
The Defendants were claiming $1.25m and the Insurers said there were 45 lever arch folders of documents to consider. The Court allowed the disclosure, stating that it was arguable that the Insurers should have noticed the fraud.
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