The Sousa decision provides important clarification of the operation of conditional fee agreements, says Michael Feakes
Litigation funding is rarely out of the legal news at present. The Jackson Report in early 2010 suggested widespread changes to the way much litigation is funded, and the government has announced plans to implement Jackson’s proposals wholesale. In a recent case, the Court of Appeal had the opportunity to achieve one of Jackson’s aims, and abolish the recoverability of certain success fees. The court’s decision provides important clarification of the operation of conditional fee agreements (CFAs).
The circumstances leading to the case of Sousa v London Borough of Waltham Forest [2011] EWCA Civ 194 were straightforward. Sousa claimed his house was damaged by subsidence when nearby trees extracted moisture from the ground underneath. His home insurers paid for the repairs, and then sought to recover their money from the owners of the trees, the defendant local council. To do this, the insurers subrogated to Sousa’s cause of action in tort against
