Hirachand v Hirachand [2024] UKSC 43 – important decision about success fees due under a conditional fee agreement

19 December 2024

The Supreme Court has handed down judgment in Hirachand v Hirachand (18 December 2024), a landmark decision concerning the recoverability of CFA success fees as part of awards under the Inheritance (Provision for Family and Dependants) Act 1975. 

The court, in allowing the appellant widow's appeal, determined that success fees payable under conditional fee agreements (CFAs) cannot be included in an award of reasonable financial provision made under the Inheritance (Provision for Family and Dependants) Act 1975 (the "1975 Act"). The prohibition in section 58A(6) of the Courts and Legal Services Act 1990 prevents inclusion of success fees in any costs order made in civil proceedings, including proceedings under the 1975 Act. 

The court held that the prohibition in section 58A(6) of the 1990 Act applied to any order dealing with the costs of proceedings, including substantive awards under the 1975 Act. Allowing recovery of success fees as part of the substantive award would undermine the policy rationale behind the prohibition and the coherence of the costs regime in civil proceedings. The court also highlighted the difficulties in applying Part 36 offers if success fees were recoverable as part of the substantive award. 

The Supreme Court allowed the appeal and excluded the sum of £16,750 for the success fee from the order made in favour of the daughter under the 1975 Act. 

Christopher Wagstaffe KC (29 Bedford Row) joined Sophia Rogers (Radcliffe Chambers) and Constance McDonnell KC (Serle Court) to represent the claimant as respondent in the appeal in the Supreme Court. 

Read the full judgment here.

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