Supreme Court Clarifies Success Fees in Inheritance Disputes | Curtis Parkinson

Supreme Court Clarifies Success Fees in Inheritance Disputes

16 January, 2025 2 minutes reading time


A Family Divided: Hirachand v Hirachand [2024] UKSC 43

The Supreme Court’s recent decision in Hirachand v Hirachand [2024] UKSC 43 significantly impacts “no win, no fee” agreements, also known as Conditional Fee Agreements (CFAs). This ruling has important implications for law firms and clients, particularly regarding success fees in inheritance disputes.

Background of the Case

The case involved a family dispute over an estate, where one party had entered into a CFA with their solicitor. The agreement included a success fee, which is an additional charge levied by the law firm if the case is won.  The dispute centred around the reasonableness of the success fee and whether it should be paid from the estate’s funds.

What Are No Win, No Fee Agreements and Success Fees?

“No win, no fee” agreements enable individuals to obtain legal representation without the need to pay upfront costs. If the case is unsuccessful, the client generally owes nothing. Conversely, if the case is successful, the law firm is entitled to charge a “success fee” in addition to their basic fees. This success fee compensates the firm for the risk taken in pursuing the case.

Why Hirachand v Hirachand is Important

In this case, the Supreme Court’s decision clarifies key principles concerning success fees in “no win, no fee” agreements. It offers guidance on: 

  1. Reasonableness of Success Fees. The Court underscored the necessity of evaluating the reasonableness of success fees by considering factors such as the risks involved in the case, the complexity of the matter, and the level of expertise required.
  1. Transparency and Client Understanding. Solicitors must ensure that clients fully comprehend the implications of success fees and how they are calculated.
  1. Payment of Success Fees from Estate Funds.The Court clarified when success fees may be payable from the estate’s assets, particularly in estate disputes. 

Our Advice

This ruling enhances protections for clients entering into “no win, no fee” agreements. It emphasises the necessity for transparency and fairness in determining success fees so that clients do not face excessive or unreasonable charges.

If you are considering a “no win, no fee” agreement, it is crucial to understand its terms, especially the success fee. Ensure you know precisely how the success fee is calculated and the factors influencing its determination.

If you would like more information about this or a related topic, please get in touch with us. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

Partnerships & Accreditations
Member of the World Association of Notaries Certified Cyber Essentials