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STATUTORY INSTRUMENTS


2003 No. 1240

LEGAL SERVICES, ENGLAND AND WALES

The Conditional Fee Agreements (Miscellaneous Amendments) Regulations 2003

  Made 30th April 2003 
  Laid before Parliament 9th May 2003 
  Coming into force 2nd June 2003 

The Lord Chancellor, in exercise of the powers conferred upon him by sections 58(3)(c), 58A(3) and 119 of the Courts and Legal Services Act 1990[1], makes the following Regulations:

Citation and commencement
     1. These Regulations may be cited as the Conditional Fee Agreements (Miscellaneous Amendments) Regulations 2003 and shall come into force on 2nd June 2003.

Amendments to the Conditional Fee Agreements Regulations 2000
    
2.  - (1) The Conditional Fee Agreements Regulations 2000[2] are amended in accordance with this regulation.

    (2) After regulation 3, insert - 

    (3) In regulation 6(a), after "3", insert ", 3A".

Amendments to the Collective Conditional Fee Agreements Regulations 2000
    
3.  - (1) The Collective Conditional Fee Agreements Regulations 2000[3] are amended in accordance with this regulation.

    (2) In regulation 4, after paragraph (1), insert - 

    (3) After regulation 5(3), insert - 


Irvine of Lairg,
C.

Dated 30th April 2003



EXPLANATORY NOTE

(This note is not part of the Regulations)


Section 58(1) of the Courts and Legal Services Act 1990 provides that a conditional fee agreement is not unenforceable if it satisfies the conditions applicable by and under that section, which include conditions specified in Regulations made by the Lord Chancellor under section 58(3)(c). These Regulations make amendments to the Conditional Fee Agreements Regulations 2000 and the Collective Conditional Fee Agreements Regulations 2000 to provide that a conditional fee agreement will be enforceable even though the client is liable to pay his legal representative's fees and expenses only if and to the extent that he recovers damages or costs in the proceedings. Amendments made to the Civil Procedure Rules 1998 provide that costs payable under such a conditional fee agreement are recoverable under Parts 44 to 48 of those Rules.

This in effect abrogates in relation to this type of conditional fee agreement the so-called indemnity principle - the principle that the amount which can be awarded to a party in respect of costs to be paid by him to his legal representatives is limited to what would have been payable by him to them if he had not been awarded costs. Solicitors will to this extent be able to agree lawfully with their clients not to seek to recover by way of costs anything in excess of what the court awards, or what it is agreed will be paid, and will no longer be prevented from openly contracting with their clients on such terms.


Notes:

[1] 1990 c. 41. Sections 58 and 58A were substituted by section 27 of the Access to Justice Act 1999 (c. 22); section 119 is an interpretation provision and is cited because of the meaning given to the word "prescribed".back

[2] S.I. 2000/692 amended by S.I. 2000/2988.back

[3] S.I. 2000/2988.back



ISBN 0 11 046027 8


 
© Crown copyright 2003
Prepared 19 May 2003


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URL: http://www.bailii.org/uk/legis/num_reg/2003/20031240.html