FPH Law (a firm) v Brown (t/a Integrum Law) [2018] EWCA Civ 1629 (16 July 2018)

FPH Law (a firm) v Brown (t/a Integrum Law) [2018] EWCA Civ 1629 (16 July 2018)

A bona fide compromise of costs liability could have been reached and would have been enforceable, regardless of the CFA's unenforceability or illegality, entitling the claimant to seek damages for loss of a chance. The defendant's breach of undertaking deprived the claimant of the opportunity to settle, and the claim is not defeated by the CFA's invalidity.

Citation
[2018] EWCA Civ 1629
Parties
Claimant / Respondent: FPH Law (a firm); Defendant / Appellant: Martyn Robert Brown (T/A Integrum Law)
Jurisdiction
England and Wales
Judgment Date
16 July 2018
Procedural Posture
Appeal From Queen's Bench Division / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Conditional Fee Agreements, Enforceability of Contracts, Compromise of Claims, Breach of Undertaking, Loss of Chance Damages
Civil Procedure Contract Law Legal Profession Conditional Fee Agreements Enforceability of Contracts Compromise of Claims Breach of Undertaking Loss of Chance Damages

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Parties

FPH Law (a firm)

Claimant / Respondent

Martyn Robert Brown (T/A Integrum Law)

Defendant / Appellant

Procedural Posture

Appeal From Queen's Bench Division / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a claimant may recover damages for loss of a chance to receive costs under a CFA found unenforceable due to non-compliance with Regulation 4 of the Conditional Fee Agreements Regulations 2000
  2. 2 Whether a bona fide compromise of costs is enforceable when the underlying CFA is unenforceable or illegal

Ratio Decidendi

A bona fide compromise of costs liability could have been reached and would have been enforceable, regardless of the CFA's unenforceability or illegality, entitling the claimant to seek damages for loss of a chance. The defendant's breach of undertaking deprived the claimant of the opportunity to settle, and the claim is not defeated by the CFA's invalidity.

Court Disposition

Appeal dismissed

Orders

  • Claimant entitled to seek damages for loss of a chance; quantum to be determined at trial
  • Costs of preliminary issue to be claimant's costs in the case