Stevensdrake Ltd (t/a Stevensdrake Solicitors) v Hunt

Stevensdrake Ltd (t/a Stevensdrake Solicitors) v Hunt

The CFA was a binding contract and not subject to an implied term limiting liability to recoveries; however, a convention estoppel arose from the parties' shared understanding that SL's fees would only be paid out of recoveries, preventing SL from claiming fees irrespective of recoveries.

Parties
Appellant: Stevensdrake Limited; Respondent: Stephen Hunt (Liquidator of Sunbow Limited)
Jurisdiction
England and Wales
Judgment Date
31 July 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed in part and dismissed in part.
Legal Topics
Conditional Fee Agreements, Estoppel by Convention, Implied Terms, Undue Influence, Fiduciary Duty, Negligence
Contract Law Insolvency Law Professional Negligence Conditional Fee Agreements Estoppel by Convention Implied Terms Undue Influence Fiduciary Duty +1 more

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Parties

Stevensdrake Limited

Appellant

Stephen Hunt (Liquidator of Sunbow Limited)

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the CFA was subject to an implied term limiting liability to recoveries
  2. 2 Whether estoppel by convention prevented SL from claiming fees irrespective of recoveries
  3. 3 Whether SH entered the CFA under undue influence

Ratio Decidendi

The CFA was a binding contract and not subject to an implied term limiting liability to recoveries; however, a convention estoppel arose from the parties' shared understanding that SL's fees would only be paid out of recoveries, preventing SL from claiming fees irrespective of recoveries.

Court Disposition

Appeal allowed in part and dismissed in part.

Orders

  • Appeal allowed on implied term (ground 1): CFA not subject to implied recoveries-only term.
  • Appeal dismissed on estoppel by convention (ground 2): SL estopped from claiming fees irrespective of recoveries.