Defendant CFA win

A London libel firm which took on a defendant's case on a no-win, no-fee basis last week settled the costs out of court, in one of the first instances of the successful use of a defendant conditional fee agreement (CFA).

David Price Solicitors & Advocates agreed to act for Barbara Gardener after she distributed a newsletter to fellow tenants in her north London apartment block, criticising the claimants - a property management company and one of its directors - for their management.

The firm took the case on under a CFA, normally only used for claimants in libel actions.

The case was thrown out of court in 2000 as there was no evidence that Ms Gardener had acted maliciously and she was protected by qualified privilege.

The firm claimed a 75% success fee and last week the claimants agreed to pay a 'substantial undisclosed sum' prior to the costs hearing.

Principal David Price said CFAs could be just as beneficial to defendants and their lawyers as claimants in some cases.

'We will soon be launching a proper scheme for defendants, where we offer them a package,' he said.

'We can provide them with pre-publication legal advice, and then offer a CFA in the event that they get sued.'

However, Mr Price admitted that for some, defendant CFAs could be more trouble than they were worth.

'It is easier for us because we are solicitor-advocates, with the advantage that we can assess the risks more quickly and don't have to rely on a barrister to come in,' he explained.

Nigel Tait, partner in fellow London libel firm Peter Carter Ruck & Partners, which also offers defendant CFAs, agreed that successful examples of defendant CFAs were likely to remain rare.

This was partly because only a handful of firms offer them, he explained and because many defendants are large companies and do not require funding.

Paula Rohan