Quantum Claims Compensation Specialists Ltd v Powell [1997] ScotCS CSIH_4 (19 December 1997)

Quantum Claims Compensation Specialists Ltd v Powell [1997] ScotCS CSIH_4 (19 December 1997)

The rule that a pactum de quota litis is unenforceable applies only to solicitors or advocates who have undertaken professional obligations to a client in relation to a claim or litigation; it does not apply to non-solicitor companies such as Quantum, even if they are owned or operated by solicitors, provided the company itself is not acting in a professional legal capacity for the client.

Citation
[1997] ScotCS CSIH_4
Parties
Pursuer: Quantum Claims Compensation Specialists Ltd; Defender: Thomas Powell
Jurisdiction
Scotland
Judgment Date
19 December 1997
Procedural Posture
Civil Appeal / Appeal From Sheriff Principal to Court of Session (inner House)
Outcome
appeal refused
Legal Topics
Pactum De Quota Litis, Unenforceability of Contracts, Conflict of Interest, Freedom of Contract
Contract Law Legal Profession Regulation Pactum De Quota Litis Unenforceability of Contracts Conflict of Interest Freedom of Contract

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Parties

Quantum Claims Compensation Specialists Ltd

Pursuer

Thomas Powell

Defender

Procedural Posture

Civil Appeal / Appeal From Sheriff Principal to Court of Session (inner House)

Legal Issues

  1. 1 Whether the contract between Quantum Claims Compensation Specialists Ltd and Thomas Powell is void and unenforceable as a pactum de quota litis
  2. 2 Whether the prohibition on pactum de quota litis applies to non-solicitor companies such as Quantum

Ratio Decidendi

The rule that a pactum de quota litis is unenforceable applies only to solicitors or advocates who have undertaken professional obligations to a client in relation to a claim or litigation; it does not apply to non-solicitor companies such as Quantum, even if they are owned or operated by solicitors, provided the company itself is not acting in a professional legal capacity for the client.

Court Disposition

appeal refused

Orders

  • interlocutor of the sheriff principal sustained
  • decree for payment of £49,350 with interest in favour of Quantum Claims Compensation Specialists Ltd