Solicitor-client costs and CFA enforceability—Substance over form (Richardson & Others v Slater & Gordon UK Ltd)
PI & Clinical Negligence analysis: This case concerned proceedings brought by 224 claimants, seeking assessment of costs deducted from their personal injury settlements under Conditional Fee Agreements (‘CFAs’). Senior Costs Judge Rowley, sitting in the Senior Courts Costs Office, addressed a number of preliminary issues in the dispute. Within those, the court considered the enforceability of the relevant CFAs and the obligations of solicitors to ensure clients are adequately informed. Senior Costs Judge Rowley’s decision serves as a helpful and timely reminder of the standards practitioners must meet when explaining CFA terms to clients, including the relevance of whether clients have read the agreement. Those questions were addressed with respect to a number of relevant pieces of legislation, including the Consumer Contracts (Information, Cancellation and Additional Charges Regulations 2013, reg 14 and section 62 of the Consumer Rights Act 2015 (CRA 2015). This decision also serves as guidance on other pertinent issues, such as the proper approach to determining the reasonableness of success fees, and the degree of precision required within agreements to escape section 74(3) of the Solicitors Act 1974 (SA 1974), which limits solicitor-client costs to the amount recoverable in litigation. Written by Connor Wright, barrister, St Philips Chambers.