Gavin Edmondson Solicitors Limited v Haven Insurance Company Limited

Gavin Edmondson Solicitors Limited v Haven Insurance Company Limited

Edmondson had a sufficient contractual entitlement to its charges under the CFA Lite retainers to support an equitable lien over settlement debts paid by Haven, and Haven had notice of Edmondson's interest via the RTA Portal; therefore, Haven's direct payment to claimants without provision for Edmondson's costs was unconscionable and Edmondson is entitled to recover its charges from Haven, limited to the settlement amounts.

Parties
Respondent/cross Appellant: Gavin Edmondson Solicitors Limited; Appellant/cross Respondent: Haven Insurance Company Limited; Intervener: Law Society
Jurisdiction
England and Wales
Judgment Date
18 April 2018
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal dismissed
Legal Topics
Solicitor's Equitable Lien, Conditional Fee Agreements, Personal Injury Claims, RTA Protocol, Notice and Unconscionability
Civil Procedure Equity Insurance Law Solicitor's Equitable Lien Conditional Fee Agreements Personal Injury Claims RTA Protocol Notice and Unconscionability

Case Brief

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Parties

Gavin Edmondson Solicitors Limited

Respondent/cross Appellant

Haven Insurance Company Limited

Appellant/cross Respondent

Law Society

Intervener

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether a solicitor's equitable lien applies where the client has no personal liability for solicitor's fees under a CFA Lite
  2. 2 Whether notice to the insurer of the solicitor's interest is sufficient to trigger the lien
  3. 3 Whether the RTA Protocol creates enforceable rights for solicitors to recover costs

Ratio Decidendi

Edmondson had a sufficient contractual entitlement to its charges under the CFA Lite retainers to support an equitable lien over settlement debts paid by Haven, and Haven had notice of Edmondson's interest via the RTA Portal; therefore, Haven's direct payment to claimants without provision for Edmondson's costs was unconscionable and Edmondson is entitled to recover its charges from Haven, limited to the settlement amounts.

Court Disposition

Appeal dismissed

Orders

  • Haven to pay Edmondson the charges identified in the CFAs as recoverable in the event of a win, limited to the settlement sums agreed with claimants.
  • Court of Appeal's order for payment to be reduced to the settlement amount in each case; counsel to agree precise form of order.