The respondent estate brought a wrongful death action and sought a declaration that a proposed contingency fee agreement with its lawyers was not prohibited by the Champerty Act.
The applications judge granted the declaration.
The Attorney General appealed.
The Court of Appeal held that contingency fee agreements are no longer per se champertous at common law, as the historic rationale for absolute prohibition is no longer justified and access to justice concerns favour their use.
However, a specific agreement may still be champertous if the lawyer has an improper motive, which can be assessed by examining the reasonableness and fairness of the fee structure.
Because the proposed fee was based on a percentage of recovery without a cap, it was premature to determine its fairness before the litigation concluded.
The appeal was allowed and the declaration set aside.