Subrogated CFA

Sousa v London Borough of Waltham Forest [2010] EW Misc 1 (EWCC); NLJ 19 February p264

The claim was settled with the claimant’s costs to be assessed. On the assessment the defendant contended that the claimant should not recover a success fee under his CFA because he was never at risk as to costs because he was indemnified under his insurance policy. Allowing the CFA would be a windfall for the insurer or their solicitors. The district judge agreed, holding that ‘It was incumbent on the court to look at and reflect the reality of the situation. The claimant was never at risk as to costs and it was unreasonable to allow him to rely on a CFA. Accordingly the success fee could not be recovered.’