Peter Farrar v Candey Limited

Peter Farrar v Candey Limited

The assignment of Mr Farrar’s cause of action to CANDEY was void and unenforceable because it was champertous and not sanctioned by statute. The common law and statutory rules prohibit solicitors from taking assignments of their clients’ causes of action prior to judgment, and Parliament has set the limits of permissible agreements. The court is bound by precedent and cannot extend the law beyond statutory provisions.

Parties
Claimant/appellant: Peter Farrar; Defendant/respondent: Candey Limited; Defendant/respondent: David Miller
Jurisdiction
England and Wales
Judgment Date
11 March 2022
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Champerty, Maintenance, Assignment of Causes of Action, Damages Based Agreements, Solicitor Client Relationship, Public Policy
Civil Procedure Legal Profession Contract Law Champerty Maintenance Assignment of Causes of Action Damages Based Agreements Solicitor Client Relationship +1 more

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Parties

Peter Farrar

Claimant/appellant

Candey Limited

Defendant/respondent

David Miller

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether a firm of solicitors acting under a damages-based agreement can validly take an assignment of their client’s cause of action
  2. 2 Whether such an assignment is champertous and contrary to public policy

Ratio Decidendi

The assignment of Mr Farrar’s cause of action to CANDEY was void and unenforceable because it was champertous and not sanctioned by statute. The common law and statutory rules prohibit solicitors from taking assignments of their clients’ causes of action prior to judgment, and Parliament has set the limits of permissible agreements. The court is bound by precedent and cannot extend the law beyond statutory provisions.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; High Court order upheld