Bevan v Power Panels Electrical Systems Ltd [2007] EWHC 90073 (Costs) (17 May 2007)

Bevan v Power Panels Electrical Systems Ltd [2007] EWHC 90073 (Costs) (17 May 2007)

The CFA was unenforceable because there was a material breach of Regulations 4(2)(e)(ii) and 4(5) in failing to disclose the solicitor's interest in recommending the insurance policy in writing, and a further material breach of Regulation 4(2)(c) in failing to make adequate enquiries about existing legal expenses insurance. These breaches had a materially adverse effect on client protection and the administration of justice.

Citation
[2007] EWHC 90073 (Costs)
Parties
Claimant: Shaun Bevan; Defendant: Power Panels Electrical Systems Limited
Jurisdiction
England and Wales
Judgment Date
17 May 2007
Procedural Posture
Costs Assessment / Post Settlement Costs Dispute
Outcome
CFA declared unenforceable; claimant's costs not recoverable from defendant.
Legal Topics
Conditional Fee Agreements, After the Event Insurance, Compliance With CFA Regulations, Material Breach of Regulations, Enforceability of Costs Agreements
Civil Procedure Costs Conditional Fee Agreements After the Event Insurance Compliance With CFA Regulations Material Breach of Regulations Enforceability of Costs Agreements

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Parties

Shaun Bevan

Claimant

Power Panels Electrical Systems Limited

Defendant

Procedural Posture

Costs Assessment / Post Settlement Costs Dispute

Legal Issues

  1. 1 Whether the Conditional Fee Agreement (CFA) complied with the Conditional Fee Agreements Regulations 2000, specifically Regulations 4(2)(c), 4(2)(e)(ii), and 4(5)
  2. 2 Whether any breach of the Regulations was material, rendering the CFA unenforceable

Ratio Decidendi

The CFA was unenforceable because there was a material breach of Regulations 4(2)(e)(ii) and 4(5) in failing to disclose the solicitor's interest in recommending the insurance policy in writing, and a further material breach of Regulation 4(2)(c) in failing to make adequate enquiries about existing legal expenses insurance. These breaches had a materially adverse effect on client protection and the administration of justice.

Court Disposition

CFA declared unenforceable; claimant's costs not recoverable from defendant.

Orders

  • Conditional Fee Agreement is unenforceable.
  • Claimant's costs are not payable by the defendant.