Mark James considers where a recent Court of Appeal ruling leaves the doctrine of champerty
Can a solicitor provide his own client with an indemnity against the client’s contingent liability to pay the other side’s costs in contentious business or does such an indemnity render the entire retainer void for champerty? Cases at first instance (Dix v Townend [2008] EWHC 90117 and Lewis v Tenants Distribution Limited [2010] EWHC 90161 (Costs)) reached different conclusions. The issue reached the Court of Appeal in Morris v Southwark LBC [2011] EWCA Civ 25, [2011] All ER (D) 183 (Jan).
Morris was a landlord and tenant case against a social landlord for disrepair to the claimant’s home. The claim settled for £10,000 compensation plus an agreement by the council to carry out the necessary repairs and pay costs. There was a conditional fee agreement (CFA) (ie, a “no win no fee” agreement) with a 10% success fee and an indemnity-against-other-side’s costs (IAOSC). Legal aid is still available for housing disrepair claims. The solicitor gave the
