Insolvency Litigation: Recent Cases And Issues (August 2017)

The Court of Appeal has confirmed that a term could not be implied into a conditional fee agreement between a liquidator and solicitors, and that the solicitors would only be paid out of recoveries made. However, the liquidator was not liable for the fees because of a common understanding between the parties. We cover this, and other issues affecting the insolvency and fraud industry, in our regular update:

Liquidator not liable for fees despite wording of CFA

The Court of Appeal in Stevensdrake Limited v Stephen Hunt and Stephen Hunt as Liquidator of Sunbow Limited [2017] has held that a term could not be implied into a conditional fee agreement (CFA) between a liquidator (Hunt) and solicitors (Stevensdrake) acting on his behalf, and that the solicitors would only be paid out of recoveries made, as this contradicted an express term in the CFA to the contrary.