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Sears Tooth agreement meaning

Published by a LexisNexis Family expert
What does Sears Tooth agreement mean?
A Sears Tooth agreement is a family law funding arrangement in which a client assigns to their solicitor the future proceeds of their financial remedy claim (for example, a lump sum or property adjustment on divorce) so the solicitor’s fees are paid from any recovery, deferring payment until settlement or judgment. It is a descriptive term, not created by statute, and in England and Wales its validity rests on case law recognising an equitable assignment of the fruits of litigation (notably Sears Tooth (a Firm) v Payne Hicks Beach [1997] 2 FLR 116). Key features include: a written assignment securing unpaid costs against the client’s recovery; typical exclusion of non‑assignable income orders (such as periodical payments/maintenance); and giving notice to the opponent (and sometimes the court) to help establish priority. It assigns future proceeds rather than creating a present charge over existing assets. Practically, it can enable representation where a client is asset‑rich but cash‑poor, and is an alternative to litigation loans. It remains subject to professional conduct and any applicable consumer credit requirements. Usage is established in England and Wales; rules on assignation, maintenance/champerty and professional practice differ in Scotland, Northern Ireland and Ireland, so local advice is essential.
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View the related Practice Notes about Sears Tooth agreement

PRACTICE NOTES
Sears Tooth Agreements in Financial Remedy Proceedings: Assignment of Awards to Secure Fees - Case Law, Practice Points and SRA Credit Rules (England and Wales)

This Practice Note provides guidance on the arrangement whereby a party to family proceedings assigns part of a prospective entitlement to their solicitors to cover legal fees, and outlines the courts’ guidance on when such agreements are suitable and the need for independent legal advice. The Family Procedure Rules 2010, SI 2010/2955, 1.1 set out the overriding objective, which includes ensuring parties are on an equal footing when a case is dealt with justly. A Sears Tooth agreement can enable a spouse or civil partner who lacks the means to fund legal fees to obtain proper advice and representation in family proceedings. For alternative funding routes, see also Practice Notes: Funding—legal services orders and costs allowances and Eligibility for family legal aid. The Sears Tooth case Assignment of potential rights In Sears Tooth v Payne Hicks Beach, the court considered whether a deed of assignment was valid where the wife had agreed to assign her rights in any financial provision and costs orders (other than periodical payment orders)...

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View the related Precedents about Sears Tooth agreement

PRECEDENTS
Sears Tooth Deed: Assignment of Financial Provision and Costs Orders to Secure Solicitors’ Fees (England and Wales)

This Deed is made the [ insert date and month ] 20[ insert year ] Parties 1 [ Insert client's full name ] of [ insert client’s full address ] (‘the Client'), and 2 [ Insert the [ members OR partners ] ] at the date of this Deed of the firm of solicitors trading as [ insert name and address of law firm ] (‘the Assignee’) Whereas: (A) In proceedings before the [ insert name of court ] under case number [ insert matter number ] (the Proceedings) in which the Client is the [ petitioner OR applicant OR respondent ] in the divorce proceedings and the [ applicant OR respondent ] in the financial remedy proceedings and their spouse [ insert name of spouse ] (‘[ insert title and surname of spouse ]’) is the [ petitioner OR applicant OR respondent ] in the divorce proceedings and the [ applicant OR respondent ] in the financial remedy proceedings, the Client seeks: (i) financial provision,...

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