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ATE/CFA
Court of Appeal to rule on 100% success fee model for low-value PI claims
The Court of Appeal is to rule on the legality of what has become the industry model for handling low-value personal injury claims, with firms charging clients a 100% success fee as standard. It was confirmed yesterday that the court has given permission for a second appeal in Herbert v HH Law.
Senior Costs Judge flags concern over PI solicitors’ standard 100% success fee
The Senior Costs Judge has called on the Law Society to remind personal injury solicitors of their obligation to undertake individual risk assessments in low-value cases and not just apply a blanket 100% success fee. He also called for a broad extension of qualified one-way costs shifting.
“Poorly drafted” CFA that named wrong defendant still valid, Court of Appeal rules
A conditional fee agreement that named the wrong defendant was still valid when read in the wider context of the claim, the Court of Appeal has ruled. It found this was actually supported by the slopping drafting of the agreement.
Irwin Mitchell highlights value of CFAs after Supreme Court win
Irwin Mitchell has lauded the value of conditional fee agreements after winning in the Supreme Court last week for an NHS worker whose bosses attempted to make her redundant whilst she was on holiday. The landmark ruling could trigger changes to all employment contracts in the UK.
Boxing promoter Warren loses twin challenges to CFAs
Boxing promoter Frank Warren has failed in his effort to avoid paying his solicitors under conditional fee agreements (CFAs) where he did not receive any damages or costs despite winning his case. The case also saw a Senior Courts Costs Office judge apply the Court of Appeal’s recent ruling in Budana, allowing the assignment of CFAs.
High Court throws 100% success fee model for low-value PI claims into doubt
The High Court has thrown the industry-standard model for handling low-value personal injury claims into doubt after ruling that solicitors still need to undertake individual risk assessments before setting the success fee – rather than just applying 100% across the board.
Big win for NHS Resolution in test cases on pre-LASPO funding switches
The Court of Appeal has found for NHS Resolution in three test cases over the reasonableness of solicitors switching clients from legal aid to conditional fee agreements ahead of the introduction of LASPO. NHSR said the ruling saved it £270,000 in these three cases – all run by Irwin Mitchell – and potentially millions more in other cases.
Burford launches insurance company to cover costs in high-value claims
Burford Capital has announced that it is to launch its own insurance company to provide adverse costs cover in high-value commercial litigation and arbitration claims where it is also providing third-party funding. It is designed to meet a need for “significant levels of adverse costs cover for major cases in costs-shifting jurisdictions around the world”.
“Regretful” Court of Appeal rejects media firm’s bid to recover huge costs bill
The Court of Appeal has upheld a decision that a leading media law firm could not recover hundreds of thousands of pounds in costs because its conditional fee agreement did not cover much of the work it undertook. Lord Justice McCombe said he rejected the appeal “not without regret”.
Deed of indemnity plus ATE enough for security for costs, but not to release solicitors from undertakings
A deed of indemnity from an after-the-event insurer was a sufficient replacement for security for costs, the High Court has ruled, but it did not release their solicitors from undertakings given previously in lieu of an order for security.
Blog
QOCS and multiple defendants – why both sides need to be wary
The recent case of Cartwright v Venduct Engineering Limited [2018] EWCA Civ 1654 represents a very interesting development in the interpretation of rule 44.14. The question before the Court of Appeal was this: where, in a matter to which QOCS applies, a claimant has brought an action against multiple defendants, is a successful defendant entitled to enforce a costs award in its favour against damages recovered by the claimant from an unsuccessful defendant?
August 16th, 2018
Associate News
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