An issue that has long being bubbling under the surface is the extent to which the Cancellation of Contracts made in a Consumer’s Home or Place of Work etc Regulations 2008 apply to solicitors’ conditional fee agreements and whether a failure to contain notice of the claimant’s rights to cancel a CFA renders the agreement unenforceable. Despite lengthy commentary been devoted to this issue at various stages there appears to have been very little in the way of judicial decision on the issue.
However, this appears to have now shot back up the agenda in light of a recent decision by Regional Costs Judge Moss in Hurley v Makuni (Manchester County Court, unreported) (click link for judgment). It was ruled that a failure to include such a notice rendered the agreement unenforceable notwithstanding the fact that the CFA was a “CFA Lite”. Expect this issue to run to the Court of Appeal.
Thanks to Paul Wainwright at Berrymans Lace Mawer for providing details on this case.