- Ambiguously-worded CFAs lead to massive success fee reductions (Iraqi Civilians v Ministry of Defence)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: The court considered the proper construction of wording in conditional fee agreements (CFA) in relation to the recoverability of a success fee. This was a group claim (no group litigation order had been made) and the level of the success fee was tied to the stage at which ‘the claim’ concluded. The court held that the proper construction of the CFAs was that the level of the success fee depended on the stage at which each individual claim concluded. Accordingly, the lead claimants were required to pay a 100% success fee, but the non-lead claimants were required to pay just 33%. Written by Alex Bagnall, technical manager at Total Legal Solutions.
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