According to Legal & Contingency, as many as 50% of all Judicial Review applications are successful and there is an ever-increasing awareness of this easily accessible facility. However, this also means that half of all Judicial Reviews applications are liable to fail, which can incur significant financial losses for the property investor if an application is overturned.
Judicial Review is often sought in relation to planning applications, with local authorities granting permission for new developments. The considerations around a planning application are often very complex, and the high risks involved mean that there may be grounds for a challenge to be made against the decision.
A Judicial Review decision is normally made by a public authority, such as a local council, but this can be overturned by the High Court in the event that there was a failure when granting the permission. In effect a Judicial Review considers whether the responsibilities of the public authority, council or other, have been discharged correctly.
Any person or group that is affected by a planning application are able to challenge a Judicial Review for a period of up to 6 weeks following the approval of the development. However, in some circumstances this period may be extended at the discretion of the courts. If a Judicial Review challenge is successful the decision that was made by the public authority can be overturned.
Judicial Review Insurance is an effective policy for a property owner who has been granted planning permission, or is shortly to be granted planning permission, and intends to progress with the development before the Judicial Review period has completed. The insurance cover can protect against the financial losses associated with a Judicial Review such as delay costs, loss in property value or increased financing costs.
Mulberry Insurance Services offer clients a specialised service for Judicial Review Indemnity cover that provides financial security against the risks, enabling developers and property owners to deliver a timely and profitable development.