Pictured above: Nichola Evans
A Court of Appeal judgment this week will have major
implications for insurers seeking access to confidential documents
that could enable them to refuse indemnity.
It follows the decision by the Court of Appeal in Quinn Direct
Insurance v The Law Society. Quinn was appealing against an earlier
decision by the High Court refusing it access to confidential
documents relating to a firm of solicitors that was being
investigated by the Law Society.
In 2007 the Law Society took possession of files and documents
relating to the firm as part of a large scale fraud investigation.
Quinn had provided the firm with professional indemnity insurance
and was its primary insurer.
Following news of disciplinary proceedings being brought by the
Law Society against two of the solicitors at the firm Quinn
declined to provide one of the partners with an indemnity on the
grounds of dishonesty as outlined in their policy. As part of its
investigation into the conduct of the other solicitor, Quinn
requested access to the documents seized by the Law Society's
investigation team.
The request was denied and Quinn then issued a wide ranging
order against the Law Society seeking access to all the documents
it had in relation to the firm. The Law Society opposed the
application on the grounds that some of the documents were
confidential and privileged. Firstly the High Court and now the
Court of Appeal agreed with the Law Society.
Nichola Evans, partner at law firm Browne Jacobson and a
specialist in professional indemnity issues, commented:
"This case is an important reminder to insurers that they will
not be able to simply rely on polices to gain access to
confidential information. Confidential and privileged information
cannot be shared with any insurer without the client's consent.
This decision means that whilst insurers will still be able to gain
access to important documents held by a firm of solicitors it is
imperative that they seek sound advice from their advisers before
making any such requests. Success will largely depend on the scope
and reasoning behind any request and whether the documents in
question are in fact subject to privilege and confidentiality."
For more information about Browne Jacobson, please visit their
website here: www.brownejacobson.co.uk