Quick updates for those dealing with disputes
Do solicitors who help their clients out by providing finance during litigation expose themselves to non-party costs orders (NCPOs)? Two recent Court of Appeal decisions provide guidance (and some reassurance to solicitors).
In Flatman v Germany, a firm of solicitors (GMS) advised impecunious claimants under conditional fee arrangements (CFAs), but without after-the-event (ATE) insurance. The claims were unsuccessful. The defendants’ insurer argued that GMS had funded the claimants’ disbursements on the implicit understanding that they would not be repaid if their claims failed – and GMS was therefore the claimants’ ‘commercial funders’. On this basis, they argued that GMS should be liable for the defendants’ costs. The insurer initially sought orders against GMS for disclosure of (i) information about the claimants’ funding arrangements and (ii) the extent to which GMS had funded the disbursements.
On appeal, Eady J made the disclosure orders. GMS appealed. Although the appeal strictly concerned disclosure, the Court of Appeal considered the circumstances in which solicitors might be subject to an NCPO (since they had no reason to order disclosure unless in support of an NCPO application). They held that, by funding disbursements, solicitors do not step outside their role as solicitors or become their clients’ commercial funders, so cannot for that reason alone be subject to an NCPO…
If you are registered and logged in to the site, click on the link below to read the rest of the Addleshaw Goddard briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Addleshaw Goddard
News from The Lawyer
Briefings from Addleshaw Goddard
This month’s roundup of developments affecting banks, wealth managers, brokers and funds.
Delay is a common problem in construction projects and can have costly implications. Before electing to terminate on grounds of contractor delay, there are a number of factors that should be considered.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
Could Slater & Gordon achieve its stated aim of becoming a top consumer brand by acquiring Pannone?