Hyde v Milton Keynes NHS Foundation Trust [2017] EWCA Civ 399

‘The claimant brought a personal injury claim against the defendant under a Community Legal Service funding certificate which was subject to costs limitations. Although the defendant had admitted liability, quantum remained in issue. With the funding certificate nearing exhaustion and the Legal Services Commission refusing further funding, the claimant’s solicitors concluded that the case could not be completed on a funded basis. Accordingly, the claimant entered into a conditional fee agreement (“CFA”) with her solicitors. The solicitors served on the defendant notice of a change in funding arrangements but took no steps to apply for or obtain a formal discharge of the funding certificate. The claim later settled, the defendant having made an increased offer which the claimant accepted. On the assessment of costs, the costs judge concluded that the claimant was entitled to recover from the defendant her costs arising under the CFA, rejecting the defendant’s contention that the CFA was unenforceable by virtue of sections 10(1) and 22(2) of the Access to Justice Act 1999 because it had been entered into at a time when the claimant was “funded” by the commission as part of the Community Legal Service. The judge dismissed the defendant’s appeal, holding that the claimant was not “funded” by the commission, for the purposes of sections 10(1) and 22(2), once the funding certificate had been exhausted, even though the certificate had not been discharged.’

WLR Daily, 23rd May 2017

Source: www.iclr.co.uk