The Court held that defendants who fail to plead non-compliance with LPUL disclosure obligations (s 174) or restrictions on commencing proceedings (s 194) cannot raise those matters at trial, applying Calabria Community Club and Boensch v Bingham. The defendants' allegations that the solicitors' expert report contained 'patent deficiencies' were rejected on the evidence, as no expert or other evidence was adduced to establish the alleged defects or that a reasonably competent solicitor would have identified them. The Court expressed a preliminary view, without deciding, that s 172 of LPUL (fair and reasonable costs) may not be available as a direct defence to a contractual claim for unpaid legal fees, noting that the statutory framework channels such disputes to the costs assessment regime, but left the question open.
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