Ascension Asset Management Ltd & Anor v Sky Solicitors Ltd [2023] EWHC 875 (KB) (17 April 2023)

Ascension Asset Management Ltd & Anor v Sky Solicitors Ltd [2023] EWHC 875 (KB) (17 April 2023)

On proper interpretation of the DCFAs, the Defendant solicitors are entitled to payment of their basic charges from the Claimants upon success in the claims, even where settlement is reached without an express costs order. The liability for basic charges is not limited to sums expressly recovered from the Opponents, and no binding cap of £50,000 was agreed during mediation. The Claimants' construction would render the agreements commercially unworkable and is rejected.

Citation
[2023] EWHC 875 (KB)
Parties
First Claimant: Ascension Asset Management Limited; Second Claimant: Goriola Olusina Daniel; Defendant: Sky Solicitors Limited
Jurisdiction
England and Wales
Judgment Date
17 April 2023
Procedural Posture
Costs Assessment / Contractual Dispute / Judgment After Hearing and Written Submissions
Outcome
Claim dismissed (insofar as Claimants sought to avoid liability for basic charges); Defendant entitled to payment of basic charges under the DCFAs.
Legal Topics
Conditional Fee Agreements, Interpretation of Retainer Agreements, Solicitor Client Costs Liability, Settlement and Costs Recovery
Contract Law Legal Costs Civil Procedure Conditional Fee Agreements Interpretation of Retainer Agreements Solicitor Client Costs Liability Settlement and Costs Recovery

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Parties

Ascension Asset Management Limited

First Claimant

Goriola Olusina Daniel

Second Claimant

Sky Solicitors Limited

Defendant

Procedural Posture

Costs Assessment / Contractual Dispute / Judgment After Hearing and Written Submissions

Legal Issues

  1. 1 Whether, under the DCFAs, the Defendant solicitors are entitled to payment of basic charges from the Claimants following a successful settlement without an express costs order.
  2. 2 Whether the Claimants' liability for fees is limited to sums recovered from the Opponents or otherwise capped.
  3. 3 Whether representations made during mediation cap the Defendant's recoverable fees at £50,000.

Ratio Decidendi

On proper interpretation of the DCFAs, the Defendant solicitors are entitled to payment of their basic charges from the Claimants upon success in the claims, even where settlement is reached without an express costs order. The liability for basic charges is not limited to sums expressly recovered from the Opponents, and no binding cap of £50,000 was agreed during mediation. The Claimants' construction would render the agreements commercially unworkable and is rejected.

Court Disposition

Claim dismissed (insofar as Claimants sought to avoid liability for basic charges); Defendant entitled to payment of basic charges under the DCFAs.

Orders

  • Claimants to pay Defendant's basic charges and disbursements as assessed.
  • No cap of £50,000 applies to the Defendant's recoverable fees.