Hirachand: An access to justice issue – a follow up

In February 2024, we wrote an article on the Supreme Court appeal relating to a claim under the Inheritance (Provision for Family and Dependants) Act 1975 (the Act). The question was whether the court may factor in a success fee payable under a conditional fee agreement (CFA) when making an award under that Act. The Supreme Court's answer to this question is no, a success fee should not form part of a claimant's award.

The decision

The Supreme Court has ruled that success fees are not recoverable from defendants. The impact on impoverished claimants is significant as any award they may receive will be significantly reduced by the success fee they must pay their solicitors (which can often be a large percentage on the level of legal fees incurred).

However, on the other hand, it reduces the risk that charities (as defendants to these claims) settle 1975 Act claims for more than is justified because a defendant argues their success fee increases their financial need. Overall, the decision is a positive one for charities as it may lead to less unmeritorious claims being taken on by firms of solicitors and will reduce the level of settlement sums that charities may agree to pay to settle a claimant's claim.

Takeaways for charities

• Establish early whether a claimant is funding their claim on a CFA, it may impact how the claimant conducts their claim.
• Resist any offers that include a recovery of the success fee.
• The decision means that claimants may become more creative in how claims of this nature are funded, always keep the merits of a claim in mind and take specialist legal advice.

Get in touch

If you think you may have, or if you wish to defend, a claim under the Inheritance (Provision for Family and Dependants) Act 1975, please contact any member of our Charities and Private Wealth Disputes team. We act for individuals, executors, trustees, trust corporations and charities.