SOLICITOR-COSTS-CONDITIONAL FEE AGREEMENT

Court of Appeal, Civil Division

Waller, Laws and Lawrence Collins LJJ

21 July 2008

The words “debtor” and “creditor” are terms defined by s 189(1) of the Consumer Credit Act 1974 (CCA 1974) and are to be used irrespective of whether the credit agreement is enforceable.

Richard Mawrey QC and Toby Riley-Smith (instructed by New Law Solicitors) for the claimant.Clive Freedman QC and William Hibbert (instructed by Kennedys) for the first defendant.Neil Hext (instructed by Herbert Smith LLP) for the second defendant.

The claimant bank designed a scheme for the funding of personal injury litigation. Under the scheme, it would enter into panel agreements with solicitors who would provide services to clients pursuant to a conditional fee agreement (CFA). The scheme covered the profit costs incurred by the solicitor in pursuit of the litigation. It did not, however, deal with the question of the