“The Supreme Court has reversed the Court of Appeal’s decision stating that success fees are not debts that can be considered a financial need of the Claimant and which the Court should make provision for. This decision by the Supreme Court will set a precedent for all 1975 Act claims going forward.
The exclusion of success fees in awards means that a significant proportion of the Claimant’s award will be eaten up by the payment of success fees, potentially leaving them with insufficient funds required for their maintenance. Whilst this is bad news for Claimants, the exclusion of the success fees and the resulting smaller award, means that more of the estate will potentially be available for the beneficiaries.
Whilst a blow for Claimants, it is in my view the right decision in law. Success fees relate to the costs of bringing court proceedings which are to be determined after an award is given by the Court. Therefore, it is difficult to see how they could constitute a part of the damages to be awarded. Furthermore, Part 36 offers made in litigation have costs consequences and it is impossible to see how principles of Part 36 would work where a success fee has been awarded in damages, but the Claimant has failed to beat a Part 36 offer made.”
If you need assistance with a 1975 Act claim, get in touch with our expert Contentious Probate solicitors or call +44 (0)3333 231580.
