The Legal Ombudsman (LeO) has fought off the first judicial review to reach court, brought by a former solicitor unhappy that it had ordered his bill to be slashed. The case, involving a CFA, comes as LeO issues a report outlining problems caused by ‘no win, no fee’ deals.
Third-party litigation funders thinking of investing in law firms to avoid liability for adverse costs will have to try their luck in front of the court after an important report on contingency fees refused to make a recommendation on whether this should be possible.
Many of the regulations underpinning the regulatory regime for legal services – including those designating the Solicitors Regulation Authority and Council for Licensed Conveyancers as ABS licensing authorities – are under the microscope as part of the government’s Red Tape Challenge, it has emerged.
The High Court has ordered a law firm to disclose the details of its funding arrangements with two clients so the successful defendants can work out whether the solicitors financially supported the cases and could be pursued for a third-party costs order.
Solicitors cannot recover the cost of arranging conditional fee agreements and after-the-event insurance, the Court of Appeal ruled yesterday. The Master of the Rolls Lord Neuberger also made a significant ruling on the application of proportionality.