The Financial Services Compensation Scheme (FSCS) is petitioning the House of Lords for leave to appeal the recent judgment by the Court of Appeal in the case of Geologistics - an Independent Insurance policyholder.
"FSCS believes this case raises important issues and merits consideration by the House of Lords," says FSCS chief executive Suzanne McCarthy. "The consequences of this judgment are potentially very costly for the insurance sector. Those costs, in turn, may be passed on to policyholders."
FSCS rejected an application for compensation from Geologistics, a policyholder of Independent Insurance, for the costs incurred in the defence of an employer's liability claim. The scheme did not consider that these costs could be included as a protected claim under the Policyholders Protection Act [1975].
The trial of Geologistics' challenge to this decision, by judicial review, was heard on 3 March 2003 and judgment delivered in Geologistics' favour on 4 March. FSCS was granted leave to appeal and the appeal was heard on 27 November. The judgment was delivered in Geologistics' favour on 18 December.
FSCS does not currently have an indication of when this case may be heard by the House of Lords.
