Baranowski v Rice [2014] NIQB 122 (24 November 2014)

Baranowski v Rice [2014] NIQB 122 (24 November 2014)

The agreement between Campbell Fitzpatrick and Axa was a conditional normal fee agreement payable on success, which is unlawful on public policy grounds and not sanctioned by statute in Northern Ireland. Therefore, no costs are due from Axa to Campbell Fitzpatrick except for counsel's fees, and under the indemnity principle, no order for costs should have been made against the plaintiff except in relation to counsel's fees.

Citation
[2014] NIQB 122
Parties
Plaintiff/appellant: Tomasz Baranowski by his mother and next friend Anna Baranowski; Defendant/respondent: Michael Rice
Jurisdiction
Northern Ireland
Judgment Date
24 November 2014
Procedural Posture
Civil Appeal (costs) / High Court Appeal From County Court Order for Costs
Outcome
appeal allowed in part
Legal Topics
Indemnity Principle, Conditional Fee Agreements, Contingency Fees, Public Policy in Legal Costs, Solicitor Client Agreements
Civil Procedure Legal Costs Insurance Law Indemnity Principle Conditional Fee Agreements Contingency Fees Public Policy in Legal Costs Solicitor Client Agreements

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Parties

Tomasz Baranowski by his mother and next friend Anna Baranowski

Plaintiff/appellant

Michael Rice

Defendant/respondent

Procedural Posture

Civil Appeal (costs) / High Court Appeal From County Court Order for Costs

Legal Issues

  1. 1 Whether the fee arrangement between Axa and Campbell Fitzpatrick contravened the indemnity rule or public policy prohibiting contingency/conditional fees
  2. 2 Whether a conditional normal fee agreement is sanctioned by statute in Northern Ireland
  3. 3 Whether the costs order against the plaintiff was valid

Ratio Decidendi

The agreement between Campbell Fitzpatrick and Axa was a conditional normal fee agreement payable on success, which is unlawful on public policy grounds and not sanctioned by statute in Northern Ireland. Therefore, no costs are due from Axa to Campbell Fitzpatrick except for counsel's fees, and under the indemnity principle, no order for costs should have been made against the plaintiff except in relation to counsel's fees.

Court Disposition

appeal allowed in part

Orders

  • Order for costs against the plaintiff is set aside except in relation to defendant's counsel's scale fees.