header-logo header-logo

17 April 2019 / David Bailey-Vella
Categories: Features , Costs , Legal services
printer mail-detail

Trading places with a CFA

David Bailey-Vella analyses Roman v AXA Insurance
  • When clients move from one firm to another can a conditional fee agreement be transferred?
  • The landmark ruling in Budana v Leeds Teaching Hospitals NHS Trust (Law Society intervening).
  • Far reaching practical implications and ramifications.

When clients move from one firm to another the valuation of work in progress (WIP) and the issue of costs recoverability, is never straightforward.

The core issues centre around whether a conditional fee agreement (CFA) can be transferred; and, if so whether the first firm will still be entitled to payment; and whether the additional liabilities under a pre Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) CFA will be recoverable when a new agreement has been entered into after 1 April 2013.

There has been considerable technical argument as to whether or not it is possible to transfer a CFA; most of the argument has concerned the distinction between novation and assignment. It was thought that a CFA must be assigned for a pre LASPO success fee to be recoverable post transfer and therefore

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Pro bono is celebrating a silver anniversary, with initiatives putting businesses and students at the heart of access to justice
Choosing the wrong expert can cost a clinical negligence claimant more than their case
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
back-to-top-scroll