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16 March 2022
Issue: 7971 / Categories: Legal News , Profession , Costs
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Solicitors’ equitable lien rights upheld

A law firm has narrowly won its argument about the limits of its equitable lien over its fees, in a case which drew a mix of judgments from the Supreme Court

The Court handed down a 3-2 majority in favour of the firm, in Bott & Co Solicitors v Ryanair DAC [2022] UKSC 8.

Bott & Co Solicitors handles flight delay compensation claims on a ‘no win no fee’ basis, and would send a letter before action to the relevant airline and ask for payment to be made to the firm’s client account. If paid, the firm would check the payment, deduct its fee and pay the rest to the client. If the airline ignored or disputed the claim, the firm would consider issuing proceedings.

In February 2016, however, Ryanair stopped this practice and instead began dealing directly with the clients and paying compensation directly to them. Bott & Co issued proceedings against the airline, one of the issues being whether the firm had an equitable lien over its fees.

The case concerned the limits to the principle under which a solicitor can ask the court to grant an equitable lien in order to protect his entitlement to fees as against his client.

It was dismissed by the High Court and Court of Appeal before succeeding at the Supreme Court with the majority judges, Lord Burrows, Lady Arden and Lord Briggs giving three separate judgments and Lord Leggatt and Lady Rose jointly dissenting.

NLJ columnist Dominic Regan said: “Lord Hope when in the court aspired to the delivery of one judgment wherever possible.

‘Here, hilariously we see four judgments from a five-member bench. Lord Briggs nailed it when he identified the need for legal advice in low value cases. The increase in the personal injury small claims limit next month is a timely reminder of how challenging it is to secure a just outcome when costs are miserable or non- existent.’

Issue: 7971 / Categories: Legal News , Profession , Costs
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MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
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