Public Sector: Insurance Policy Dispute - PKF Francis Clark
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An organisation provided a service to people in the care of a local authority. It took out an insurance policy to cover litigation costs in circumstances where there was a significant threat to the viability of the company.

When the local authority threatened to withdraw all its operations a process of litigation, paid for by the insurance policy, was started.

Without notice and shortly before trial, the insurer changed its stance and withdrew funding, resulting in an adverse court decision that caused the client a significant loss. The client wished to challenge both the insurer and its solicitor who withdrew services when the insurer stopped paying.

Escalate has arranged a suitable platform upon which to pursue its claim, targetting the insurer and the solicitor in circumstances where the client would otherwise have had no opportunity of making a recovery. There are now 2 separate cases being litigated: a contractual dispute claiming £1.5m and professional negligence for £400k.

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