CFA Lite

Jones v Wrexham Borough Council [2007] EWCA Civ 1356 CA 19 December 2007

The defendants challenged the enforceability of a conditional fee agreement (CFA), relying on a breach of the 2000 Regulations. The point taken was that there was a failure to comply with reg 4(2)(e)(ii) relating to the requirement to inform the client of any ‘interest’ the solicitors might have in recommending a particular insurer. The claimant contended that reg 4 had been disapplied by the Conditional Fee Agreement (Miscellaneous Amendments) Regulations (the 2003 Regulations) and that the CFA was a ‘CFA Lite’ within those regulations. The main issue on the appeal was whether the CFA in this case fell within reg 3A, which disapplies regs 2, 3 and 4 to a CFA to which its regulation applies.