Lexlaw Ltd v Zuberi

Lexlaw Ltd v Zuberi

Clause 6.2 of the Agreement, which requires the client to pay costs and expenses upon early termination, does not render the Agreement unenforceable under the 2013 Regulations. Regulation 4(1) is limited to the sharing of litigation proceeds and does not regulate other contractual payment obligations. The Agreement is not unenforceable for the reasons alleged by the Defendant.

Parties
Claimant: Lexlaw Ltd; Defendant: Mrs Shaista Zuberi
Jurisdiction
England and Wales
Judgment Date
10 July 2020
Procedural Posture
Civil (contract/costs) / Preliminary Issue Trial
Outcome
Preliminary issue determined in favour of the Claimant; paragraphs 93 to 101 of the Re-Re-Amended Defence struck out.
Legal Topics
Damages Based Agreements, Enforceability of Contracts, Statutory Interpretation
Contract Law Civil Procedure Legal Costs Damages Based Agreements Enforceability of Contracts Statutory Interpretation

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Parties

Lexlaw Ltd

Claimant

Mrs Shaista Zuberi

Defendant

Procedural Posture

Civil (contract/costs) / Preliminary Issue Trial

Legal Issues

  1. 1 Whether clause 6.2 of the Damages-Based Agreement renders the agreement unenforceable under the Damages-Based Agreements Regulations 2013 and section 58AA of the Courts and Legal Services Act 1990

Ratio Decidendi

Clause 6.2 of the Agreement, which requires the client to pay costs and expenses upon early termination, does not render the Agreement unenforceable under the 2013 Regulations. Regulation 4(1) is limited to the sharing of litigation proceeds and does not regulate other contractual payment obligations. The Agreement is not unenforceable for the reasons alleged by the Defendant.

Court Disposition

Preliminary issue determined in favour of the Claimant; paragraphs 93 to 101 of the Re-Re-Amended Defence struck out.

Orders

  • Paragraphs 93 to 101 of the Re-Re-Amended Defence are struck out.
  • Counsel to agree an order on remaining issues.