Fosberry & Anor v Revenue and Customs [2006] EWHC 90061 (Costs) (06 October 2006)

Fosberry & Anor v Revenue and Customs [2006] EWHC 90061 (Costs) (06 October 2006)

Although B J Rice & Associates had both a right of audience and a right to conduct litigation before the VAT Tribunal, the Conditional Fee Agreement entered into with the Appellants was unenforceable due to material breaches of the Conditional Fee Agreements Regulations 2000, specifically the failure to comply with Regulation 3(2)(c) and Regulation 4(2)(c). As a result, the indemnity principle applied and no costs were recoverable from HMRC.

Citation
[2006] EWHC 90061 (Costs)
Parties
Appellants: Kelvin John and Barbara M Fosberry; Respondents: Her Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
06 October 2006
Procedural Posture
Costs Assessment Following VAT Tribunal Proceedings / Detailed Assessment of Costs Before the Supreme Court Costs Office
Outcome
Costs not recoverable
Legal Topics
VAT Registration, Right of Audience, Right to Conduct Litigation, Conditional Fee Agreements, Enforceability of Costs, Solicitors Act 1974, Value Added Tax Tribunals Rules 1986, Civil Procedure Rules, Litigants in Person, Indemnity Principle
Tax Law Costs Law Civil Procedure VAT Registration Right of Audience Right to Conduct Litigation Conditional Fee Agreements Enforceability of Costs +5 more

Case Brief

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Parties

Kelvin John and Barbara M Fosberry

Appellants

Her Majesty's Revenue and Customs

Respondents

Procedural Posture

Costs Assessment Following VAT Tribunal Proceedings / Detailed Assessment of Costs Before the Supreme Court Costs Office

Legal Issues

  1. 1 Whether B J Rice & Associates, as non-solicitors, could recover costs for representing the Appellants before the VAT Tribunal
  2. 2 Whether the Conditional Fee Agreement (CFA) between the Appellants and B J Rice & Associates was enforceable under the relevant statutory regime
  3. 3 Whether the costs claimed were recoverable from HMRC given the regulatory requirements and the indemnity principle

Ratio Decidendi

Although B J Rice & Associates had both a right of audience and a right to conduct litigation before the VAT Tribunal, the Conditional Fee Agreement entered into with the Appellants was unenforceable due to material breaches of the Conditional Fee Agreements Regulations 2000, specifically the failure to comply with Regulation 3(2)(c) and Regulation 4(2)(c). As a result, the indemnity principle applied and no costs were recoverable from HMRC.

Court Disposition

Costs not recoverable

Orders

  • No costs are recoverable by the Appellants from HMRC due to the unenforceability of the Conditional Fee Agreement.
  • If the Appellants wish to recover a success fee, they must give notice and apply for relief from sanctions under the CPR.