Stevensdrake Ltd (t/a Stevensdrake Solicitors) v Hunt (as Liquidator of Sunbow Ltd) [2016] EWHC 342 (Ch) (26 February 2016)

Stevensdrake Ltd (t/a Stevensdrake Solicitors) v Hunt (as Liquidator of Sunbow Ltd) [2016] EWHC 342 (Ch) (26 February 2016)

The CFA was subject to a mutual understanding and acceptance that Stevensdrake Limited's right to payment of its basic charges and success fee was conditional upon there being funds available from recoveries. The evidence established that the recoveries basis applied, overriding the strict terms of the CFA. Therefore, Stevensdrake Limited could not enforce personal liability against Stephen Hunt for its fees except to the extent of recoveries.

Citation
[2016] EWHC 342 (Ch)
Parties
Claimant: Stevensdrake Limited (Trading as stevensdrake solicitors); Defendant: Stephen Hunt; Defendant: Stephen Hunt as Liquidator of Sunbow Limited
Jurisdiction
England and Wales
Judgment Date
26 February 2016
Procedural Posture
Commercial Contract Dispute / Final Judgment After Trial
Outcome
Claim for solicitors' fees dismissed except for disbursements; summary judgment for counsel's fees upheld.
Legal Topics
Conditional Fee Agreements, Solicitor Client Relationship, Recoveries Only Liability, Implied Terms, Estoppel, Fiduciary Duty, Undue Influence
Contract Law Insolvency Law Conditional Fee Agreements Solicitor Client Relationship Recoveries Only Liability Implied Terms Estoppel Fiduciary Duty +1 more

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Parties

Stevensdrake Limited (Trading as stevensdrake solicitors)

Claimant

Stephen Hunt

Defendant

Stephen Hunt as Liquidator of Sunbow Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment After Trial

Legal Issues

  1. 1 Whether the Conditional Fee Agreement (CFA) imposed personal liability on Stephen Hunt for solicitors' fees regardless of recoveries
  2. 2 Whether the 'Recoveries Only Liability' practice applied to the CFA
  3. 3 Whether terms from prior correspondence and dealings were incorporated or implied into the CFA

Ratio Decidendi

The CFA was subject to a mutual understanding and acceptance that Stevensdrake Limited's right to payment of its basic charges and success fee was conditional upon there being funds available from recoveries. The evidence established that the recoveries basis applied, overriding the strict terms of the CFA. Therefore, Stevensdrake Limited could not enforce personal liability against Stephen Hunt for its fees except to the extent of recoveries.

Court Disposition

Claim for solicitors' fees dismissed except for disbursements; summary judgment for counsel's fees upheld.

Orders

  • Stevensdrake Limited's claim for base costs and success fee dismissed except to the extent of recoveries.
  • Summary judgment for counsel's fees against Stephen Hunt upheld.