Gavin Edmondson Solicitors Ltd v Haven Insurance Co Ltd

Gavin Edmondson Solicitors Ltd (Respondent/Cross-Appellant) v Haven Insurance Co Ltd (Appellant/Cross-Respondent) was an appeal regarding the limits of the solicitor’s equitable lien, a judge-made remedy that provides a form of security for the recovery by solicitors of their agreed charges for the successful conduct of litigation, out of the fruits of that litigation. In this case, the insurer had settled claims with claimants directly, without paying the solicitors' charges. The solicitors argued that the insurer had notice of the terms of the retainer agreements and was therefore liable for the solicitors' charges. The insurer argued that the claimants had no contractual liability to pay the solicitors' charges. The solicitors argued that they were entitled to the costs under the RTA Protocol, a scheme designed to ensure that solicitors are paid their fixed costs and charges at each stage of the process, direct by the defendant’s insurer. The Supreme Court found that the claimants had a contractual liability to pay the solicitors' charges, and that the insurer had notice of the terms of the retainer agreements. The Court held that the equitable lien could be enforced to recover the solicitors' charges from the insurer, up to the amount of the settlement sums actually agreed to be paid to the claimants. The Court also held that the RTA Protocol did not create any legal or equitable rights of any kind, if the client had no responsibility to the solicitor sufficient to support the solicitor’s lien. The Court therefore dismissed the appeal, subject to one point of detail regarding the amount of the recovery.