header-logo header-logo

17 April 2019 / David Bailey-Vella
Categories: Features , Costs , Legal services
printer mail-detail

Trading places with a CFA

David Bailey-Vella analyses Roman v AXA Insurance
  • When clients move from one firm to another can a conditional fee agreement be transferred?
  • The landmark ruling in Budana v Leeds Teaching Hospitals NHS Trust (Law Society intervening).
  • Far reaching practical implications and ramifications.

When clients move from one firm to another the valuation of work in progress (WIP) and the issue of costs recoverability, is never straightforward.

The core issues centre around whether a conditional fee agreement (CFA) can be transferred; and, if so whether the first firm will still be entitled to payment; and whether the additional liabilities under a pre Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) CFA will be recoverable when a new agreement has been entered into after 1 April 2013.

There has been considerable technical argument as to whether or not it is possible to transfer a CFA; most of the argument has concerned the distinction between novation and assignment. It was thought that a CFA must be assigned for a pre LASPO

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
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?
back-to-top-scroll