Diag Human SE & Anor v Volterra Fietta (Re Assessment Under Part III Solicitors Act 1974) [2023] EWCA Civ 1107 (04 October 2023)

Diag Human SE & Anor v Volterra Fietta (Re Assessment Under Part III Solicitors Act 1974) [2023] EWCA Civ 1107 (04 October 2023)

The CFA was unenforceable as a whole due to non-compliance with statutory requirements; severance was not available because it would fundamentally alter the contract's character; quantum meruit recovery is precluded by public policy; and sums paid on account must be repaid following assessment at nil.

Citation
[2023] EWCA Civ 1107
Parties
Respondent/claimant: Diag Human SE; Respondent/claimant: Josef Stava; Appellant/defendant: Volterra Fietta (a Firm)
Jurisdiction
England and Wales
Judgment Date
04 October 2023
Procedural Posture
Appeal (costs Assessment Under Solicitors Act 1974) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Conditional Fee Agreements (cfa), Severance of Contract, Quantum Meruit, Restitution, Public Policy, Solicitors' Costs, Unenforceable Contracts
Legal Profession Contract Law Costs Conditional Fee Agreements (cfa) Severance of Contract Quantum Meruit Restitution Public Policy +2 more

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Parties

Diag Human SE

Respondent/claimant

Josef Stava

Respondent/claimant

Volterra Fietta (a Firm)

Appellant/defendant

Procedural Posture

Appeal (costs Assessment Under Solicitors Act 1974) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether severance of unenforceable provisions in a CFA allows recovery of discounted fees
  2. 2 Whether solicitors can recover on a quantum meruit basis under an unenforceable CFA
  3. 3 Whether solicitors must repay sums paid on account under an unenforceable CFA absent a restitution claim

Ratio Decidendi

The CFA was unenforceable as a whole due to non-compliance with statutory requirements; severance was not available because it would fundamentally alter the contract's character; quantum meruit recovery is precluded by public policy; and sums paid on account must be repaid following assessment at nil.

Court Disposition

Appeal dismissed

Orders

  • Solicitors not entitled to recover any fees under the unenforceable CFA
  • Solicitors must repay all sums paid on account by the clients