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	United Kingdom Statutory Instruments
You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Conditional Fee Agreements (Miscellaneous Amendments) Regulations 2003 No. 1240 URL: http://www.bailii.org/uk/legis/num_reg/2003/20031240.html

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" Requirements where the client's liability is limited to sums recovered
     3A  - (1) This regulation applies to a conditional fee agreement under which, except in the circumstances set out in paragraph (5), the client is liable to pay his legal representative's fees and expenses only to the extent that sums are recovered in respect of the relevant proceedings, whether by way of costs or otherwise.

    (2) In determining for the purposes of paragraph (1) the circumstances in which a client is liable to pay his legal representative's fees and expenses, no account is to be taken of any obligation to pay costs in respect of the premium of a policy taken out to insure against the risk of incurring a liability in the relevant proceedings.

    (3) Regulations 2, 3 and 4 do not apply to a conditional fee agreement to which this regulation applies.

    (4) A conditional fee agreement to which this regulation applies must - 


(a) specify - 


(i) the particular proceedings or parts of them to which it relates (including whether it relates to any appeal, counterclaim or proceedings to enforce a judgment or order); and

(ii) the circumstances in which the legal representative's fees and expenses, or part of them, are payable; and



(b) if it provides for a success fee - 



(i) briefly specify the reasons for setting the percentage increase at the level stated in the agreement; and

(ii) provide that if, in court proceedings, the percentage increase becomes payable as a result of those proceedings and the legal representative or the client is ordered to disclose to the court or any other person the reasons for setting the percentage increase at the level stated in the agreement, he may do so.



    (5) A conditional fee agreement to which this regulation applies may specify that the client will be liable to pay the legal representative's fees and expenses whether or not sums are recovered in respect of the relevant proceedings, if the client - 



(a) fails to co-operate with the legal representative;

(b) fails to attend any medical or expert examination or court hearing which the legal representative reasonably requests him to attend;

(c) fails to give necessary instructions to the legal representative; or

(d) withdraws instructions from the legal representative.



    (6) Before a conditional fee agreement to which this regulation applies is made, the legal representative must inform the client as to the circumstances in which the client may be liable to pay the legal representative's fees and expenses, and provide such further explanation, advice or other information as to those circumstances as the client may reasonably require.".

    (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 - 

    " (1A) The circumstances referred to in paragraph (1) may include the fact that the legal representative's fees and expenses are payable only to the extent that sums are recovered in respect of the proceedings, whether by way of costs or otherwise.".

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

    " (4) Sub-paragraphs (b) and (c) of paragraph (2) do not apply to a collective conditional fee agreement under which, except in the circumstances set out in paragraph (6), the client is liable to pay his legal representative's fees and expenses only to the extent that sums are recovered in respect of the proceedings, whether by way of costs or otherwise.

    (5) In determining for the purposes of paragraph (4) the circumstances in which a client is liable to pay his legal representative's fees and expenses, no account is to be taken of any obligation to pay costs in respect of the premium of a policy taken out to insure against the risk of incurring a liability in the relevant proceedings.

    (6) A collective conditional fee agreement to which paragraph (4) applies may specify that the client will be liable to pay his legal representative's fees and expenses whether or not sums are recovered in respect of the relevant proceedings, if the client - 


(a) fails to co-operate with the legal representative;

(b) fails to attend any medical or expert examination or court hearing which the legal representative reasonably requests him to attend;

(c) fails to give necessary instructions to the legal representative; or

(d) withdraws instructions from the legal representative.".

Irvine of Lairg,
C.

Dated 30th April 2003

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

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

 

© Crown copyright 2003

Prepared 19 May 2003