The landmark Callery v Gray ruling this week dashed hopes that the Court of Appeal would limit recoverability of costs in conditional fee cases – while suggesting a significant cap should be imposed on the level of success fees charged by claimant lawyers.

The judgment, handed down on 17 July, has upset predictions in some quarters that the appeal court would effectively end the use of conditional fee agreements (CFAs) in personal injury (PI) cases after the court backed the principle of recoverability in all cases.