Diag Human SE & Anor v Volterra Fietta

Diag Human SE & Anor v Volterra Fietta

Severance of the unenforceable success fee provisions would fundamentally alter the character of the CFA, rendering it a conventional retainer and violating public policy; quantum meruit recovery and retention of sums paid on account are also precluded by statute and authority.

Parties
Respondent/claimant: Diag Human SE; Respondent/claimant: Josef Stava; Appellant/defendant: Volterra Fietta (a Firm)
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
appeal dismissed
Legal Topics
Conditional Fee Agreements, Severance, Quantum Meruit, Restitution, Solicitors' Costs, Unenforceable Contracts
Contract Law Legal Profession Regulation Public Policy Conditional Fee Agreements Severance Quantum Meruit Restitution Solicitors' Costs +1 more

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Parties

Diag Human SE

Respondent/claimant

Josef Stava

Respondent/claimant

Volterra Fietta (a Firm)

Appellant/defendant

Procedural Posture

Civil Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether severance of unenforceable provisions in a conditional fee agreement is permissible
  2. 2 Whether solicitors can recover fees 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

Severance of the unenforceable success fee provisions would fundamentally alter the character of the CFA, rendering it a conventional retainer and violating public policy; quantum meruit recovery and retention of sums paid on account are also precluded by statute and authority.

Court Disposition

appeal dismissed

Orders

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