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Patel v Legal Services Commission

Neighbour dispute — Boundary — Claimant legally aided in damages claim — Award of nominal damages only — Claimant’s costs award overturned — Whether Legal Services Commission entitled to a statutory charge over claimant’s home to recover funding — Claim allowed

The claimant obtained a declaration that an extension erected by his neighbours had encroached on his land along a strip that measured 7in at its widest point. At the trial, it was conceded that the boundary line should be defined as contended for by the claimant, and he was awarded nominal damages of £3,000. However, when his neighbours successfully took the case to the Court of Appeal, his legal costs rose to more than £45,000. The Appeal Court overturned a costs award in his favour.

The defendant notified the claimant that it intended to obtain a charge over his home in order to recover its funding pursuant to section 16(6) of the Legal Aid Act 1988. The claimant applied to the court for a declaration that the defendant was not entitled to a statutory charge, since this would apply only to property that had been recovered or preserved in the proceedings for which legal aid had been given. Although the statutory charge theoretically applied to the strip of land in issue, the evidence was that its value was nil, and that its retention had not added to the value of the claimant’s property.

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