SINGH & ORS V INGRAM
The case of Singh & Ors v Ingram [2025] EWCA Civ 264 (14 March 2025) provides guidance and information following the Court of Appeal’s rejection of an argument that a retrospective CFA as invalid. The Court was suspicious of argument that the receiving party’s solicitors alleged regulatory breaches gave rise to reason for the paying party not to pay. However, the clients were perfectly happy and understood the agreement in place.
Background of the case:
David Ingram, the liquidator of MSD Cash and Carry PLC, initiated proceedings in 2015 against Mohinder Singh and others, alleging that they had engaged in actions to deplete the company’s assets. At trial, adverse findings were made against the Defendants, leading to an indemnity costs order. The subsequent costs assessment proceedings, overseen by Costs Judge Nagalingam, centred on whether the CFA between Ingram and his solicitors, Boyes Turner LLP, had retrospective effect.
Summary:
- The primary legal issue was whether the CFA, executed on 24 March 2015, applied to the entirety of the litigation, including the period before its formal execution. The Costs Judge determined that the CFA was retrospective, a decision upheld by Mr Justice Lavender in the High Court. The appellants challenged this conclusion, contending that the CFA should not cover the period prior to its signing.
- Lord Justice Coulson, delivering the judgment of the Court, examined the wording of the CFA and the evidence presented. He noted that the Costs Judge had thoroughly considered the terms of the agreement, and the intentions of the parties involved. The Court found that the CFA’s terms supported its retrospective application, aligning with the parties’ understanding and the conduct of the litigation.
- The conclusion from the Court of Appeal dismissed the appellants’ appeal as fundamentally misconceived, affirming the decisions of the Costs Judge and Mr Justice Lavender. This judgment underscores the importance of clear contractual terms and the factual context in determining the scope of legal agreements, particularly in complex insolvency proceedings.
How this will affect the client:
- The outcome in this case, should be of significant guidance on drafting and interpretation of CFAs.
- It highlights the importance of clear and precise contracts.
- It highlights the need for transparency and accurate clauses which relate to the case.
How can PIC assist?:
We can provide guidance in relation to the clauses contained within your CFAs in relation to what is covered, success and responsibilities. Combined with our TTL+ services, this can help deal with potential problems before it is too late.
Dave Webster, Senior Legal Costs Negotiator
17.04.2025