Garrett v Halton Borough Council

Garrett v Halton Borough Council

A conditional fee agreement entered into before 1 November 2005 is unenforceable if there is a material breach of the applicable statutory conditions or the Conditional Fee Agreements Regulations 2000, regardless of whether the client suffered actual prejudice. Materiality is assessed by whether the breach had a materially adverse effect on the protection afforded to the client or the proper administration of justice, judged at the time of the agreement. In the Myatt cases, the solicitors failed to take reasonable steps to ascertain the existence of BTE insurance and asked the wrong questions, amounting to a material breach of regulation 4(2)(c). In Garrett, the solicitors failed to...

Parties
Claimant/appellant: Deborah Garrett; Defendant/respondent: Halton Borough Council; Claimants/appellants: David Myatt & Ors; Defendant/respondent: National Coal Board; Intervener: Law Society (Intervener)
Jurisdiction
England and Wales
Judgment Date
18 July 2006
Procedural Posture
Civil Appeal / Appeal From County Court and Supreme Court Costs Office to Court of Appeal
Outcome
Appeals dismissed
Legal Topics
Conditional Fee Agreements, Materiality of Breach, Client Protection, Legal Expenses Insurance, Solicitor Disclosure Obligations
Civil Procedure Costs Law Conditional Fee Agreements Materiality of Breach Client Protection Legal Expenses Insurance Solicitor Disclosure Obligations

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Parties

Deborah Garrett

Claimant/appellant

Halton Borough Council

Defendant/respondent

David Myatt & Ors

Claimants/appellants

National Coal Board

Defendant/respondent

Law Society (Intervener)

Intervener

Procedural Posture

Civil Appeal / Appeal From County Court and Supreme Court Costs Office to Court of Appeal

Legal Issues

  1. 1 Does a breach of the Conditional Fee Agreements Regulations 2000 render a CFA unenforceable if the breach is not shown to have caused actual prejudice to the client?
  2. 2 Is the enforceability of a CFA to be determined at the time of the agreement or at the time of assessment?
  3. 3 What constitutes a material breach under regulation 4(2)(c) and 4(2)(e)(ii) of the Regulations?

Ratio Decidendi

A conditional fee agreement entered into before 1 November 2005 is unenforceable if there is a material breach of the applicable statutory conditions or the Conditional Fee Agreements Regulations 2000, regardless of whether the client suffered actual prejudice. Materiality is assessed by whether the breach had a materially adverse effect on the protection afforded to the client or the proper administration of justice, judged at the time of the agreement. In the Myatt cases, the solicitors failed to take reasonable steps to ascertain the existence of BTE insurance and asked the wrong questions, amounting to a material breach of regulation 4(2)(c). In Garrett, the solicitors failed to...

Court Disposition

Appeals dismissed

Orders

  • The appeals in both Garrett and Myatt are dismissed.
  • The CFAs in question are unenforceable due to material breaches of the Regulations.