header-logo header-logo

18 February 2010 / Michael Feakes
Issue: 7405 / Categories: Features , Procedure & practice
printer mail-detail

Stormy conditions ahead?

Michael Feakes on a recent court decision which blew CFAs a fair wind

There is stormy weather on the horizon for conditional fee agreements (CFAs), if the Jackson Report is any forecast. But at least one dark cloud hanging over CFAs has now been blown away. An appeal judge’s decision last month has provided a ray of sunshine for insurers pursuing subrogated recovery claims.

Background

The case (Sousa v London Borough of Waltham Forest [2010] EW Misc 1 (EWCC)) involved subsidence caused by tree roots. The claimant said his property was damaged by the defendant’s trees, and the claim was settled with costs to be assessed. So far, so typical.

The claim had been brought by the claimant’s insurers, under their right of subrogation. The insurers had instructed solicitors under a collective CFA with a success fee. Again, all very ordinary.

But then things went awry—at least for the claimant’s lawyers. At a hearing to assess the claimant’s costs, the defendant pointed to CPR 44.4. This rule provides that the court must disallow costs

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

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
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
The Environment Agency can prosecute offences beyond environmental legislation where proceedings support its statutory functions, the Divisional Court has confirmed
Should a conviction stand when a later ruling reveals that the law underpinning it was wrong? The answer exposes a clash between finality and justice
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
back-to-top-scroll