Sibthorpe & Anor v London Borough of Southwark [2011] EWCA Civ 25 (25 January 2011)

Sibthorpe & Anor v London Borough of Southwark [2011] EWCA Civ 25 (25 January 2011)

The indemnity provision in the CFA, whereby solicitors indemnify their client against adverse costs, is not champertous because it does not provide the solicitor with a share of the proceeds or profit from the litigation, but only exposes them to a potential loss. The law of champerty should not be expanded by the courts in this context, and the CFA is not unenforceable on this ground.

Citation
[2011] EWCA Civ 25
Parties
Claimant Respondent: Regina Sibthorpe; Claimant Respondent: Danri Morris; Defendant Appellant: London Borough of Southwark
Jurisdiction
England and Wales
Judgment Date
25 January 2011
Procedural Posture
Civil Appeal / Appeal From High Court (queen's Bench Division) and Senior Courts Costs Office to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Champerty, Conditional Fee Agreements, Public Policy, Costs Indemnity, Access to Justice
Civil Procedure Legal Profession Contract Law Champerty Conditional Fee Agreements Public Policy Costs Indemnity Access to Justice

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 15 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Regina Sibthorpe

Claimant Respondent

Danri Morris

Claimant Respondent

London Borough of Southwark

Defendant Appellant

Procedural Posture

Civil Appeal / Appeal From High Court (queen's Bench Division) and Senior Courts Costs Office to Court of Appeal

Legal Issues

  1. 1 Whether a solicitor's indemnity of a client's adverse costs liability under a conditional fee agreement is champertous and unenforceable
  2. 2 Whether the inclusion of such an indemnity renders the entire CFA unenforceable
  3. 3 Whether the indemnity provision constitutes a contract of insurance under the Financial Services and Markets Act 2000

Ratio Decidendi

The indemnity provision in the CFA, whereby solicitors indemnify their client against adverse costs, is not champertous because it does not provide the solicitor with a share of the proceeds or profit from the litigation, but only exposes them to a potential loss. The law of champerty should not be expanded by the courts in this context, and the CFA is not unenforceable on this ground.

Court Disposition

Appeal dismissed

Orders

  • Appeal on champerty issue dismissed
  • Permission to appeal on insurance issue refused