In this article Simon Pearl and Iftikhar Ali set out by means of a short case study, the current hot issues to be aware of for manufacturers, distributors and retailers of products that have obtained product liability insurance cover which is governed by English law. This article appeared in the 8th edition of The International Comparative Legal Guide to: Product Liability 2010; published by Global Legal Group Ltd, London (www.iclg.co.uk).

If an insurer has exercised its right to control the defence of a third party liability claim, or if a liability policy expressly enables an insurer to control all proceedings in respect of claims for which it might be liable, the insured is prohibited from settling any claims without the consent of the insurer. Such prohibition also extends to claims brought by the insured against third parties that impact on rights of indemnification. This issue was recently considered in the case of Clare Horwood & Others v Land of Leather (in administration) and Zurich Insurance Plc and Others.

Lord Justice Jackson's long-awaited final report was published on 14 January 2010. The report follows on from the wide-ranging proposals set out in his preliminary report published in May 2009. Weighing in at well over 500 pages, there is a lot to digest, with the report containing recommendations which, if accepted, would herald a huge shift in the litigating of civil claims, both large and small.