Sibthorpe & Morris v London Borough of Southwark

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In Sibthorpe & Morris v London Borough of Southwark [2011] EWCA Civ 25 the Court of Appeal declined to strike down as unlawful (on the basis of champerty) CFAs where the claimants’ solicitors agreed to indemnify the claimants against adverse costs orders.

The February 2011 edition of Litigation Funding reported the claimants’ solicitors as saying that they ran their housing disrepair cases on CFAs and:

“We haven’t lost one of these cases against Southwark since 1994. [We have] probably 30 cases a year [against Southwark]”

The CFAs set the level of success fee at a relatively modest 10%. However, with a 100% success rate over a period of the last 16 years or so, even 10% looks somewhat cheeky.

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