Addleshaw Goddard LLP v Wood & Anor [2015] EWHC B12 (Costs) (08 April 2015)

Addleshaw Goddard LLP v Wood & Anor [2015] EWHC B12 (Costs) (08 April 2015)

The retainer between AG and Mr Berezovsky was a valid and enforceable contentious business agreement under s.61 of the Solicitors Act 1974. The 100% success fee was fair and reasonable given the risks and deferred payment structure. Level 2 Success was triggered on 12 October 2012 upon recovery of the requisite amount in the Main Action. AG is entitled to an order for payment of the outstanding fees. However, the right to a s.73 charge is not automatic and arises only upon court order; the court must consider the effect of insolvency and the interests of other creditors before granting such a charge. The court declined to grant a s.73 charge at this stage, pending further determination of...

Citation
[2015] EWHC B12 (Costs)
Parties
Claimant: Addleshaw Goddard LLP; Defendants: Nicholas Stewart Wood and Kevin John Hellard (Grant Thornton) as Administrators of the Estate of Boris Abramovich Berezovsky
Jurisdiction
England and Wales
Judgment Date
08 April 2015
Procedural Posture
Costs Application Under CPR 8 / Reserved Judgment Following Full Submissions and Evidence
Outcome
AG's application for an order for payment of outstanding fees under the CBA is granted; application for a s.73 charge is refused at this stage.
Legal Topics
Contentious Business Agreements, Solicitors Act 1974 S.61 and S.73, Charging Orders, Assessment of Costs, Insolvent Estates
Civil Procedure Costs Law Insolvency Law Contentious Business Agreements Solicitors Act 1974 S.61 and S.73 Charging Orders Assessment of Costs Insolvent Estates

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 4 Authorities cited 8 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Addleshaw Goddard LLP

Claimant

Nicholas Stewart Wood and Kevin John Hellard (Grant Thornton) as Administrators of the Estate of Boris Abramovich Berezovsky

Defendants

Procedural Posture

Costs Application Under CPR 8 / Reserved Judgment Following Full Submissions and Evidence

Legal Issues

  1. 1 Whether the retainer is a valid Contentious Business Agreement (CBA) enforceable under s.61 Solicitors Act 1974
  2. 2 Whether the 100% success fee is fair and reasonable
  3. 3 Whether AG is entitled to a charge under s.73 Solicitors Act 1974 over funds recovered

Ratio Decidendi

The retainer between AG and Mr Berezovsky was a valid and enforceable contentious business agreement under s.61 of the Solicitors Act 1974. The 100% success fee was fair and reasonable given the risks and deferred payment structure. Level 2 Success was triggered on 12 October 2012 upon recovery of the requisite amount in the Main Action. AG is entitled to an order for payment of the outstanding fees. However, the right to a s.73 charge is not automatic and arises only upon court order; the court must consider the effect of insolvency and the interests of other creditors before granting such a charge. The court declined to grant a s.73 charge at this stage, pending further determination of...

Court Disposition

AG's application for an order for payment of outstanding fees under the CBA is granted; application for a s.73 charge is refused at this stage.

Orders

  • Administrators to pay AG £12,663,822.95 for fees earned under the CBA, subject to any further assessment if required.
  • No s.73 charge granted at this stage; issue may be revisited pending determination of the estate's solvency and effect on other creditors.