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Secretary of State for the Department of Energy And Climate Change & Anor v Jones & Ors

2014

COURT OF APPEAL (CRIMINAL DIVISION)

United Kingdom

CORAM

  • LORD JUSTICE PATTEN
  • LADY JUSTICE SHARP

Areas of Law

  • Civil Procedure
  • Contract Law

AI Generated Summary

In the Phurnacite Workers Group Litigation, former industrial workers of modest means sued the operators of works in South Wales for personal injuries. Represented by Hugh James under Law Society model CFAs, they entered disbursement funding agreements under which the firm advanced disbursements at an agreed interest rate of 4% above base, payable if the claims succeeded. Following a hearing on 24 March 2013, Swift J ordered on 3 May 2013 that the defendants pay pre-judgment interest on disbursements at that rate. On appeal, the defendants argued the court should have set interest by reference to Hugh James’s circumstances (as if a first-class borrower), rather than the claimants’ class as private individuals, and relied on a 20 March letter about Consumer Credit Act exemptions. Lady Justice Sharp held the agreements created a real interest liability upon success, that 4% above base was reasonable for private individuals, rejected the letter as a binding concession, and dismissed the appeal. Lady Justice Gloster and Lord Justice Patten agreed.