Court of Appeal
Bott & Co Solicitors Ltd v Ryanair DAC
[2019] EWCA Civ 143

Lewison, Simon, Lindblom LJJ
2019 Feb 5, 6; 12

SolicitorCostsLienSolicitors handling flight delay compensation claims for passengersAirline making direct payment to passengers who had instructed solicitorsWhether solicitors entitled to equitable lien over paymentWhether solicitors’ services attracting protection of equityWhether “litigation services

The solicitors specialised in handling claims for compensation on behalf of airline passengers who were entitled, under Parliament and Council Regulation (EC) No 261/2004, to such compensation from airlines for delayed flights. Initially the airline dealt directly with the solicitors in respect of passenger claims but began to communicate directly with the solicitors’ clients and to pay compensation directly to them. The solicitors brought Part 8 proceedings against the airline, claiming, inter alia, that it was entitled to an equitable lien over the payment which would require the airline to hold back part of the compensation in order to cover the solicitors’ entitlement to fees, or to make payment of the whole of the compensation direct to the solicitors. The judge rejected the solicitors’ claim to an equitable lien and the solicitors appealed.

On the appeal—

Held, appeal dismissed. The equitable right at issue was a right to ask the court to exercise a discretionary power to protect the solicitor’s entitlement to fees as against his client. In order to come within the limits of that right, the services that the solicitor provided had to be recognisable as litigation services, which promoted access to justice. Accordingly, the services that would attract the protection of equity were services of the kind that a solicitor would perform in conducting litigation or contemplated litigation. The making of a claim under the Regulation being largely mechanical and formulaic, the services provided by the solicitors in processing the vast majority of the claims which did not require the issue of court proceedings could not be said either to be litigation services; or to be required in order to promote access to justice, unless and until the airline disputed a claim. Therefore, where the solicitors simply wrote a letter of claim or assisted a client to complete an online form, and the claim was paid in response to the letter or the form, the solicitors were not entitled to an interest in the compensation that equity would protect (paras 31–33, 53, 58–59, 75, 76, 77).

Meguerditchian v Lightbound [1917] 2 KB 298, CA and Gavin Edmondson Solicitors Ltd v Haven Insurance Co Ltd [2018] 1 WLR 2052, SC(E) considered.

Decision of Edward Murray sitting as a deputy judge of the Chancery Division [2018] EWHC 534 (Ch) affirmed.

George Bompas QC and Anna Markham (instructed by Rosenblatt Ltd) for the solicitors.

Brian Kennelly QC and Tom Coates (instructed by Oracle Solicitors and Consultants Ltd) for the airline.

Fraser Peh, Barrister

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