How does legal cover with actually work ?

JMW77

My neighbour has threatened me with court  and it is all with the insurance company at the moment as in both sides of the dispute.i am currently waiting to see if they will represent me I have done the statement of truth .

From what I work out our insurance will only take it on if they believe they have over 51% chance of winning .

So what happens if our side decides they cant win what will happen ,Will my neighbours take me to court themselves or will their insurance take me to court and I will have to pay myself for a solicitor.

Could their insurance tell them they cant take on their case because its not over 51% chance of winning. If so could my insurers still represent me?

Any info as I would like to know what to expect.

Thank you

Sandtree

In normal circumstances there are three hurdles that need to be passed:
1) The issue must be covered by the terms of the policy (both in topic and direction (ie claimant or defendant))
2) There must be a reasonable prospect of success (the 51% chance you mentioned)
3) The estimated cost must be proportionate to the value of the claim (they wont spend £10,000 in legal fees to try and in you £50)

The problem with the second two points is that they are very much "expert judgement" and so hard to challenge should they decide its below the 51% for example.

Are both insured with the same insurance company then? I know in my days of Motor Claims we had special "blue on blue" protocols to follow if we insure both parties in a dispute which in general were intended to ensure fairness to the customers but for example in a disputed liability situation which couldnt be resolved rather than going to court it'd be escalated to the Head of Multi-Track who was a highly experienced barrister and typically dealt with our claims that were over £1m.

Unfortunately I don't know what protocols legal expenses providers put in place if any.

Should you be in a position where the neighbour's policy confirms cover but your's declines cover then it will be up to you if you want to instruct a solicitor at your own expense or not. The court system is generally divided into three "tracks" (small, fast and multi) which is based on predominately value being claimed. If the claim is under £10,000 it generally goes to small track (aka small claims court) which is intended to be self service and prevents solicitors fees being added to the cost of the claim. Fast track (under £25k) allows limited solicitors fees and multi-track is where the big numbers come in. 

[Deleted User]

What is your neighbor suing for?