Lewis v Tennants Distribution Ltd

Lewis v Tennants Distribution Ltd

The solicitor’s agreement to pay adverse costs orders does not amount to unlawful maintenance or champerty, nor does it breach the Solicitors Practice Rules. The law of maintenance and champerty has not been extended to invalidate such agreements, and there is no perceivable risk that such an interest would jeopardise the integrity of a solicitor.

Parties
Claimant: Murray Lewis; Defendant: Tennants Distribution Limited
Jurisdiction
England and Wales
Judgment Date
23 February 2010
Procedural Posture
Costs Assessment / Ruling on Preliminary Issue
Outcome
First preliminary issue decided in favour of the Claimant; the solicitor’s retainer is not unenforceable for illegality due to maintenance or champerty.
Legal Topics
Maintenance and Champerty, Conditional Fee Agreements, Solicitors Practice Rules
Civil Procedure Legal Costs Maintenance and Champerty Conditional Fee Agreements Solicitors Practice Rules

Case Brief

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Parties

Murray Lewis

Claimant

Tennants Distribution Limited

Defendant

Procedural Posture

Costs Assessment / Ruling on Preliminary Issue

Legal Issues

  1. 1 Whether the Claimant’s solicitor’s retainer is unenforceable for illegality at common law due to maintenance or champerty
  2. 2 Whether the Claimant’s solicitor’s retainer is illegal as constituting unlawful insurance contrary to the Financial Services and Markets Act 2000

Ratio Decidendi

The solicitor’s agreement to pay adverse costs orders does not amount to unlawful maintenance or champerty, nor does it breach the Solicitors Practice Rules. The law of maintenance and champerty has not been extended to invalidate such agreements, and there is no perceivable risk that such an interest would jeopardise the integrity of a solicitor.

Court Disposition

First preliminary issue decided in favour of the Claimant; the solicitor’s retainer is not unenforceable for illegality due to maintenance or champerty.

Orders

  • Further hearing to be held to complete submissions on the second preliminary issue and on costs, permission to appeal, or time for appealing in relation to this ruling.