The recoverability of premiums were not considered at The Accident Group (TAG) test cases last week, which TAG has claimed as a victory.
Senior costs judge Master Hurst considered a vital preliminary issue regarding the Conditional Fee Agreement Regulations 2000.
Under Regulation 4, a legal representative must explain aspects of the CFA to the claimant.
However, under the TAG CFA scheme, a TAG employee, not a solicitor, gives the explanation.
The defendant insurers' lawyers argued that did not comply with the regulation, rendering the solicitors' retainer agreed by the claimant unenforceable.
If they are correct, the defendants will not have to pay the claimants' costs.
A judgement is not expected for a few weeks. However, TAG's representative Anthony Dennison of Rowe Cohen said TAG had emerged victorious on one point.
He said Ian Burnett, the QC for the defendants, had conceded to Master Hurst that the preliminary hearing was not expected to consider the recoverability of premiums.
Claimants pay TAG about £970 to handle their claim. This sum does not cover solicitors' fees, which are arranged separately.
Dennison said, until the concession by Burnett, the defendants' lawyers had relied upon the Country Court decision on English v Clipson, that the premium was linked to the Regulation 4 issue.
However Nick White of Beachcroft Wansbrough, who is acting for one of the defendants, said the insurers had never argued that TAG's premiums would be covered in the preliminary hearing.
"We're not saying the premium is recoverable, just that we'll cover that at a later hearing," he said.
