No Assignment of CFAs, Says the County Court - Geoffrey Weddell, 1 Chancery Lane
11/12/15. If a claimant is pursuing a personal injuries claim funded by a CFA, and the solicitors’ firm goes into administration, can the CFA be assigned to a new firm? No, says the County Court at Liverpool. In Jones v Spiral Healthcare (unreported, 11th September 2015, transcript available on Westlaw), the original CFA was entered into validly in 2012. In 2014 the Claimant’s solicitors’ firm became insolvent. Administrators were appointed. The administrators sold all of the extant CFA-funded PI claims to a new firm which took them over.
The transaction was supported by a deed of assignment between the administrators and the new firm which was intended by both parties to achieve a transfer of all of the existing CFAs so that the new firm could act on the existing terms. The claim of Jones succeeded and the Claimant’s solicitors claimed the costs due under the CFA, including costs incurred after the assignment. However the Court held that it isn’t possible to...
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