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UKSC in Hirachand v Hirachand: success fees excluded from Inheritance (Provision for Family and Dependants) Act 1975 awards; CPR costs regime and Part 36 upheld; MCA 1973 analogy rejected

Published on: 27 January 2025

Published by a LexisNexis Private Client expert
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Hirachand (Appellant) v Hirachand and another (Respondents) [2024] UKSC 43

What are the practical implications of this case?

Applications under the I(PFD)A 1975 are frequently issued by individuals requiring financial support. On that basis, numerous claimants lack the funds to meet continuing legal expenses personally from their own pockets. As a result, CFAs are commonly adopted and relied upon. In addition, determining a maintenance award involves evaluating a person’s financial position and requirements in detail. Success fees cannot be recovered from the opposing party under section 58A of the Courts and Legal Services Act 1990. Yet they remain a monetary obligation of a winning claimant. Prior to this ruling, the success fee could be factored in when assessing financial need and, in turn, when fixing the substantive award. That approach no longer applies, so successful parties must satisfy the success fee from their own resources, thereby diminishing the value of the substantive award. What was the...

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