Hirachand v Hirachand – where do we go from here?

A common narrative throughout anyone’s litigation journey is costs. How much will it cost to issue proceedings? How much will it cost to get to trial? What happens if I can no longer afford my legal fees?

It is often the case that those that seek awards under the Inheritance (Provisions for Family & Dependants) Act 1975 (“Inheritance Act”) are no longer able to access funds which were previously available to them. They are also grieving the loss of a loved one. Despite having a good claim, many are put off by the prospect of spending so much on legal fees to fight for what they need.

So, how can Brachers help?

The most anticipated judgement of 2024 was handed down by the Supreme Court on 18 December 2024 for the case of Hirachand v Hirachand which concerned the question of whether or not the ‘success fee’ associated with Conditional Fee Agreements could be recovered as part of the financial settlement in claims brought under the Inheritance Act.

Unfortunately, the Supreme Court ruled that a success fee could not be recovered by applicants as part of the lump sum payment awarded under the Inheritance Act.  So, if you pursue a claim under a Conditional Fee Agreement and are awarded a lump sum, this is likely to be decreased by the value of your success fee.

It was commented in the judgement that interim orders could be sought in order to pay for legal costs associated with a claim being brought under the Inheritance Act. A particular reference was made to the case of Weisz v Weisz [2019] in which an interim order was made under section 5 of the Inheritance Act to fund the applicants legal costs in the proceedings.

Section 5 of the Inheritance Act seeks to help those specific applicants who are in particular immediate financial need due to the fact that they have been left out of a Will or do not benefit under the intestacy rules. Most commonly in spouse/cohabitant cases, it may well be that the potential claimant does not have the financial means to bring a claim against the estate. In these cases, it may be that the applicant can make an interim application for a lump sum attributable to their legal costs in bringing the claim, especially if it is within the estate’s means.

In Weisz v Weisz, the estate was valued at approximately £4million and the applicant was the deceased’s wife who had only been left the deceased’s 50% share in the matrimonial home. She was seeking a lump sum in contribution to her legal fees up to and including a financial dispute resolution hearing (an FDR). She also sought £8,511 per month as an income provision. The judge awarded her £55,000 on account of her legal fees, commenting that she was very likely to be awarded something from the estate should it go all the way to trial. She was also awarded a monthly income however this was less than what she had requested.

Further guidance and support

If you would like further advice, please contact our Private Wealth Disputes team who can offer expert advice when disputes arise in relation to Inheritance Act claims, disputed/challenged Wills, contested probate and estates, trust disputes.

To get in touch please fill out our contact form or alternatively you can call us on 01622 690691 and speak to one of our experts.

This content is correct at time of publication