Rees v Gateley Wareing (A Firm) & Ors [2014] EWCA Civ 1351 (22 October 2014)

Rees v Gateley Wareing (A Firm) & Ors [2014] EWCA Civ 1351 (22 October 2014)

Gateley Wareing, as solicitors entitled to conduct litigation, provided litigation services under a retainer agreement for a contingent fee. This arrangement constituted a conditional fee agreement within section 58 of the Courts and Legal Services Act 1990, which was not compliant with statutory requirements and...

Source-derived case information.

Citation
[2014] EWCA Civ 1351
Parties
Appellant: David Rees; Appellant: Gwyneth Rees; Respondent: Gateley Wareing (a firm); Respondent: Gateley LLP
Jurisdiction
England and Wales
Judgment Date
22 October 2014
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal allowed
Legal Topics
Conditional Fee Agreements, Contingency Fees, Champerty, Solicitors' Retainers, Litigation Services, Unenforceable Contracts
Contract Law Professional Regulation Civil Litigation Conditional Fee Agreements Contingency Fees Champerty Solicitors' Retainers Litigation Services +1 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

David Rees

Appellant

Gwyneth Rees

Appellant

Gateley Wareing (a firm)

Respondent

Gateley LLP

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the retainer agreement between Mr and Mrs Rees and Gateley Wareing was unenforceable under statutory provisions or at common law
  2. 2 Whether Gateley Wareing provided litigation services under a conditional fee agreement prohibited by statute
  3. 3 Whether the retainer agreement was champertous and contrary to public policy

Ratio Decidendi

Gateley Wareing, as solicitors entitled to conduct litigation, provided litigation services under a retainer agreement for a contingent fee. This arrangement constituted a conditional fee agreement within section 58 of the Courts and Legal Services Act 1990, which was not compliant with statutory requirements and thus unenforceable. The distinction between solicitors conducting litigation and providing ancillary services is irrelevant; statutory policy prohibits contingent fees for litigation services unless expressly permitted.

Court Disposition

appeal allowed

Orders

  • Retainer agreement of 5 August 2002 declared unenforceable in the events which occurred.
  • Gateley Wareing not entitled to enforce the retainer agreement for fees based on recoveries.