Farrar v Candey Ltd [2022] EWCA Civ 295 (11 March 2022)

Farrar v Candey Ltd [2022] EWCA Civ 295 (11 March 2022)

A solicitor acting for a client in legal proceedings may not validly take an assignment of the client's cause of action prior to judgment, and a champertous agreement not sanctioned by statute remains contrary to public policy and unenforceable.

Citation
[2022] EWCA Civ 295
Parties
Claimant: Peter Farrar; Appellant: Candey Limited; Defendant/respondent: David Miller
Jurisdiction
England and Wales
Judgment Date
11 March 2022
Procedural Posture
Civil Appeal / Appeal From High Court to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Assignment of Causes of Action, Champerty, Damages Based Agreements, Solicitor Client Relationship, Public Policy, Enforceability of Legal Agreements
Civil Procedure Legal Profession Contract Law Insolvency Assignment of Causes of Action Champerty Damages Based Agreements Solicitor Client Relationship +2 more

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Parties

Peter Farrar

Claimant

Candey Limited

Appellant

David Miller

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether a firm of solicitors acting under a damages-based agreement can validly take an assignment of their client's cause of action
  2. 2 Whether such an assignment is void as champertous or contrary to public policy

Ratio Decidendi

A solicitor acting for a client in legal proceedings may not validly take an assignment of the client's cause of action prior to judgment, and a champertous agreement not sanctioned by statute remains contrary to public policy and unenforceable.

Court Disposition

Appeal dismissed

Orders

  • The appeal by CANDEY Limited is dismissed.