Impact Holdings warns over possible contingent liability costs

Impact Holdings UK posted an update on Wednesday, advising following the Supreme Court hearing on 30 June between subsidiary Impact Funding Solutions and AIG Europe Insurance UK, the court found in favour of AIG.

The AIM-traded firm said the decision may trigger the contingent liability detailed in its 2016 financial statements.

“The Supreme Court is considered to have brought to conclusion the mitigation claims pursued by IFSL against various solicitor practices with the effect that IFSL can now continue with its claim against the ultimate defendant,” Impact’s board said in a statement.

“The board is presently taking professional advice from its legal team on the implications of this judgement.

“It is the board’s opinion that this decision enhances its claim against the ultimate defendant.”

Impact said a further announcement will be made when appropriate advice has been taken.

The litigation has been over the recovery of disbursements funding loans from solicitors

and their insurers, with Impact previously obtaining a judgment against AIG in the Court of Appeal, which also refused AIG permission to appeal to the Supreme Court.

AIG subsequently asked the Supreme Court for permission to appeal directly, which was granted leading to the June decision.

It announced in February 2015 that the professional indemnity insurers of AIG Europe Insurance UK refused to meet the award.