DIAG HUMAN SE & Anor v VOLTERRA FIETTA (A FIRM)

DIAG HUMAN SE & Anor v VOLTERRA FIETTA (A FIRM)

The retainer created by the Side Letter was wholly conditional and unenforceable under statutory and common law rules; severance would fundamentally alter the contract and is not permitted; quantum meruit and retention of sums paid are barred by public policy and statute; all sums paid under the unenforceable retainer must be returned.

Parties
Respondent/claimant: Diag Human SE; Respondent/claimant: Mr Josef Stava; Appellant/defendant: Volterra Fietta (A Firm)
Jurisdiction
England and Wales
Judgment Date
29 July 2022
Procedural Posture
Appeal / Judgment on Appeal From Senior Courts Costs Office
Outcome
appeal dismissed
Legal Topics
Conditional Fee Agreements, Champerty, Severance, Quantum Meruit, Solicitors Act 1974, Unenforceable Contracts
Contract Law Legal Profession Regulation Public Policy Conditional Fee Agreements Champerty Severance Quantum Meruit Solicitors Act 1974 +1 more

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Parties

Diag Human SE

Respondent/claimant

Mr Josef Stava

Respondent/claimant

Volterra Fietta (A Firm)

Appellant/defendant

Procedural Posture

Appeal / Judgment on Appeal From Senior Courts Costs Office

Legal Issues

  1. 1 Whether severance of unenforceable provisions in a solicitor's retainer is possible to leave an enforceable contract
  2. 2 Whether quantum meruit or restitution is available for services rendered under an unenforceable retainer
  3. 3 Whether sums paid under an unenforceable retainer must be returned

Ratio Decidendi

The retainer created by the Side Letter was wholly conditional and unenforceable under statutory and common law rules; severance would fundamentally alter the contract and is not permitted; quantum meruit and retention of sums paid are barred by public policy and statute; all sums paid under the unenforceable retainer must be returned.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed; Master’s judgment affirmed.
  • All sums paid under the unenforceable retainer for work after 6 September 2017 must be returned to the claimants.