Stevensdrake Ltd (t/a Stevensdrake Solicitors) v Hunt (as Liquidator of Sunbow Ltd)

Stevensdrake Ltd (t/a Stevensdrake Solicitors) v Hunt (as Liquidator of Sunbow Ltd)

The CFA between the parties was subject to an overriding and accepted term, established by prior correspondence and conduct, that the solicitors' fees (base costs and uplift) would only be payable out of recoveries and that the defendant would not be personally liable for any shortfall; this term was fundamental and negated any contrary provision in the CFA. The defendant is liable for disbursements (including counsel's fees) but not for the solicitors' own charges.

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
Civil (contractual Dispute) / Judgment After Trial
Outcome
Claim for solicitors' own charges (base costs and uplift) dismissed; defendant liable for disbursements (including counsel's fees) and interest on unpaid disbursements.
Legal Topics
Conditional Fee Agreements (cfa), Solicitor Client Relationship, Estoppel by Convention, Undue Influence, Fiduciary Duties, Breach of Contract, Legal Costs and Disbursements
Contract Law Insolvency Law Professional Negligence Conditional Fee Agreements (cfa) Solicitor Client Relationship Estoppel by Convention Undue Influence Fiduciary Duties +2 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

Civil (contractual Dispute) / Judgment After Trial

Legal Issues

  1. 1 Whether the CFA imposed personal liability on the defendant for solicitors' fees irrespective of recoveries
  2. 2 Whether a prior agreement or practice limited liability to recoveries only
  3. 3 Whether estoppel by convention or undue influence applied to prevent enforcement of the CFA

Ratio Decidendi

The CFA between the parties was subject to an overriding and accepted term, established by prior correspondence and conduct, that the solicitors' fees (base costs and uplift) would only be payable out of recoveries and that the defendant would not be personally liable for any shortfall; this term was fundamental and negated any contrary provision in the CFA. The defendant is liable for disbursements (including counsel's fees) but not for the solicitors' own charges.

Court Disposition

Claim for solicitors' own charges (base costs and uplift) dismissed; defendant liable for disbursements (including counsel's fees) and interest on unpaid disbursements.

Orders

  • Claimant's claim for its own fees and uplift dismissed.
  • Defendant to pay disbursements (including counsel's fees) and interest as per contract or law.