Naim Lone v Solicitors Regulation Authority Ltd
[2023] EWHC 349 (Admin)
Camran Mirza & Ors v CMS Cameron McKenna Mabarro Olswang LLP
7 August 2024
[2024] EWHC 2058 (Ch)
High Court
A client sued their lawyers, claiming they misused money held for court costs. The court decided the lawyers had actually fixed the problem, so the lawsuit was pointless. The client's actions, like not following the proper steps before suing, also hurt their case. The judge dismissed the case, saying it was a waste of everyone's time and money.
Key Facts
- •Dispute between claimants and former solicitors (CMS) regarding allocation and use of funds received on account for criminal and civil proceedings.
- •Claimants sought declarations concerning £50,000 (criminal trust monies) and £129,000 (civil trust monies) paid to CMS for counsel's fees.
- •Claimants alleged breach of trust and fiduciary duty by CMS in using trust monies to pay their own fees.
- •CMS applied to strike out the claim or for summary judgment.
- •Claimants applied for summary judgment.
- •The claimants' witness statements, claim, and particulars of claim did not always accurately reflect the underlying contemporaneous documents.
- •The alleged breaches of trust were remedied before or shortly after the claim was issued.
- •The Mirzas had ongoing concerns about the level of CMS's costs and the transparency of cost information.
Legal Principles
Applications for summary judgment, strike out, and amendment are exercises of the court's discretion, subject to the overriding objective of dealing with cases justly and proportionately.
CPR 3.4(2)(a) to (c), Easyair Ltd v Opal Telecom Ltd [2009] EWHC 339 (Ch), Kawasaki Kisen Kaisha Ltd v James Kemball Ltd [2021] EWCA Civ 33
The test for summary judgment is whether the claim has a real (as opposed to fanciful) prospect of success.
Easyair Ltd v Opal Telecom Ltd [2009] EWHC 339 (Ch)
For declarations, a two-stage approach is used: establishing the facts and then exercising discretion to grant the declaration.
Abaidildinov and anor v Amin [2020] EWHC 2129 (Ch)
The court considers the justice to both parties, the declaration's usefulness, and any special reasons when deciding on a declaration.
FSA v Rourke [2001] EWHC 704 (Ch)
A claim may be struck out if it is an abuse of process or there's been a failure to comply with rules.
CPR 3.4(2)(a) to (c)
Solicitor's lien: Unless otherwise agreed, a solicitor can exercise a lien over their work product and monies paid on account pending payment of fees.
Withers LLP v Langbar International Ltd [2011] EWCA Civ 1419
Jameel abuse: A claim may be abusive if the costs are disproportionate to the benefit achieved.
Jameel v Dow Jones & Co [2005] EWCA Civ 75
Pre-action conduct: Parties are expected to engage in pre-action conduct before issuing proceedings, unless exceptional circumstances apply.
Practice Direction – Pre-Action Conduct
Outcomes
Amendment application refused; Defendant's application for summary judgment granted; Claimants' application dismissed.
The claims concerning both the criminal and civil trust monies lacked a real prospect of success. The alleged breaches of trust were remedied, rendering the declarations sought pointless. Furthermore, the claimants' conduct, including failure to comply with pre-action protocol and making numerous inaccurate assertions, weighed against them.
Similar Cases
Snehal Dattani & Anor v Messrs Ferns Solicitors
[2024] EWHC 2980 (Ch)
Kirsty Williams-Henry v Associated British Ports & Anor (Wasted Costs Order Judgment)
[2024] EWHC 2415 (KB)
Yvia Pulford v Hughes Fowler Carruthers Limited
[2023] EWHC 1429 (SCCO)
Anthony King & Ors v DWF LLP & Ors
[2023] EWHC 3132 (Comm)