The OPG105 Form – An Update for Professional Deputies

All professional Deputies should be aware of the OPG105 form (introduced in March 2016) which is required for submission alongside the OPG102 Deputyship Report on an annual basis to the Office of the Public Guardian in general management cases.

When submitting General Management Bills for Assessment to the Senior Courts Costs Office in relation to Deputyship matters, they are now requesting the above information. You may or may not have received notice from the Court stating the following:

“For the attention of Financial Deputies: Following the introduction of the OPG105 form in March 2016, please ensure when submitting general management bills for assessment, copies of the Annual Report/Accounts and Form OPG105 are attached to your bill to be assessed. Thank you for your co-operation in this matter.”

Following the Professional Deputy Costs Good Practice Guidance issued by the OPG and the SCCO in July 2016, it was requested that these documents were filed alongside the Bill of Costs for assessment by the Deputy. It’s apparent that very few Deputies are following this procedure and as such, the Court appear to be reinforcing the message. The guidance states:

“When submitting their bill for assessment, professional Deputies should enclose a copy of the fees estimate previously submitted to OPG. Estimates are not binding on the detailed assessment. If the costs claimed in the bill are 20% or more above the estimate it will also be necessary to provide reasons to the SCCO as to why there is a difference.

Should there be changes in the client’s circumstances during the year (and therefore costs to their estate), the Deputy should alert OPG if the fees are likely to be 20% or more than the submitted estimate. However, it will be for the SCCO to assess the professional Deputy’s costs at the end of the reporting year and for the Deputy to explain any inconsistencies.”

The guidance can be found here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/538901/19_07_16_Professional_deputy_costs__FINAL.pdf

If you have any queries in respect of the above information, please do not hesitate to contact Stephanie Kaye, Head of the Court of Protection Costs Team at Clarion Solicitors, at Stephanie.kaye@clarionsolicitors.com or alternatively, please call 0113 336 3402.

 

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Service of Court of Protection Bills of Costs – Who is an Interested Party?

At our Court of Protection Masterclass yesterday, Master James spoke insightfully about the service of Court of Protection Bills of Costs on interested parties. She confirmed:

“Run-of-the-mill Assessments generally relate to general management charges appointment of Deputies etc. Since the advent of the Mental Capacity Act 2005, it is increasingly common for family members to challenge decisions such as the appointment of a Deputy, or the registration of an Enduring Power of Attorney.

The Court hearing these applications has the usual armoury of costs orders at its disposal and in a number of cases it may make a costs order against the interested party or Applicant. In other cases, it will simply order the Deputy’s costs to be paid from the estate of P.

Other situations arise where P dies before a Deputy’s bill for general management charges or other matters has been assessed. In all these situations, often when the bill is lodged, it is clear that there are objections from family members, unsuccessful applicants to the Court, or beneficiaries under the will or intestacy of P, to the costs that are claimed.”

It’s important to note that Master James said in her notes “in all these situations, the Deputy or party seeking payment must make these objections clear when lodging their bills for Assessment. In these circumstances, the bills are usually referred to a Master for a Direction to be made pursuant to CPR Rule 47.19A (3) – see link to Part 47 at page 3 above:

“The Court may direct that the persons seeking Assessment may serve a copy of the request on any person who has a financial interest in the outcome of the Assessment”.

What is or is not a “financial interest” is explained in CPD Part 47 paragraph 18.2; here is a link to the Practice Direction:

https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part-47-procedure-for-detailed-assessment/practice-direction-46-costs-special-cases2#18.1

She proceeded to confirm, “there have been cases proceeding before Costs Officers and/or a Master where it is not apparent that there is an interested party with the result that a Final Costs Certificate (FCC) may be issued without the full knowledge of who the relevant parties are.

In some cases, the FCC has subsequently had to be rescinded and the process of Detailed Assessment restarted at considerable cost either to the estate of P, Solicitors or Deputies.”

We recommend that any interested parties are highlighted for the SCCO’s attention in your letter to the SCCO, enclosing your bill of costs.

If you have any questions, please do not hesitate to contact the COP Costs Team at Clarion, COPCosts@clarionsolicitors.com or call 0113 336 3402.

Litigation costs in Court of Protection bills – are these recoverable?

It is extremely common for Deputies to be involved in ongoing litigation claims for Protected Parties. Deputies often become involved in interim payment applications and are usually asked to disclose details of the Protected Party’s affairs to the litigation solicitor to assist with the Schedule of Loss and other documentation. The main question that needs to be answered however is whether these costs can be claimed within the general management bill of costs.

Unfortunately, the answer is no…

Master Haworth considered this and made an unpublished judgment on 3 June 2014 in relation to civil costs within Court of Protection matters. Master Haworth stated that:

“The principal point at issue was one that appears to be coming increasingly common in COP general management bills, namely the costs incurred by the Deputy in relation to ongoing litigation. In particular, requests being made by the litigation solicitor for information relating to the affairs of the Protected Party and more particularly in relation to possible interim payment applications. The view I take is that where the Deputy is being asked to provide information and/or schedules and/or documentation to support an interim payment application in ongoing litigation these are not general management charges.”

Master Haworth directed the Deputy to withdraw their bill of costs and to re-submit a new bill of costs which did not include the litigation costs to allow him to solely assess the general management costs that had been incurred.

It is advisable that the Deputy’s costs which relate to the Protected Party’s litigation claim are not included within general management bills. Costs which relate to the litigation claim should be recovered within the litigation bill of costs. The Deputy should therefore outline their costs to the litigation solicitor to ensure that the costs are remunerated correctly.

If you require any further advice or assistance in relation to your Court of Protection costs, please do not hesitate to contact the Clarion Costs Team on COPCosts@clarionsolicitors.com or 0113 246 0622.

New guidance issued on facilitating the participation of a Protected Party and vulnerable persons in Court of Protection Proceedings

Mr Justice Charles has issued helpful guidance in relation to how to facilitate the contributions of Protected Parties in various circumstances throughout COP proceedings.

The practical guidance is provided to suggest how practitioners and professionals in the field might consider encouraging and promoting the participation of the Protected Party in proceedings in the COP. The guidance states that it is primarily directed towards health and welfare cases in the Court, however, it is likely to be of assistance in some property and affairs cases.

The guidance includes identifying the Protected Party’s needs within the Court process, considering the Protected Party’s wishes and feelings during proceedings, the attendance of the Protected Party at hearings, meeting with the Judge, giving information or evidence to the Court and acting as a Witness.

The Protected Party’s best interests must be considered at each stage of proceedings and accommodating the Protected Party’s needs, whilst practically being realistic and proportionate, are key points to consider throughout.

The guidance may be of benefit to practicing Deputies and other professionals acting for vulnerable people in the Court of Protection.

More information and access to the guidance can be found at the link below:

http://www.familylaw.co.uk/system/froala_assets/documents/1245/Practice_Guidance_Vulnerable_Persons.pdf

Proportionality in the Court of Protection

You will have all heard about the ‘Jackson Reforms’, which so far, have not been something that Court of Protection practitioners have had to be too concerned about – until now.

As part of the ‘Jackson Reforms’, a new test of proportionality was introduced. Proportionality now trumps reasonableness and ‘necessity’. Even if a cost was reasonable and was necessary, it can be disallowed on the basis of proportionality. The purpose of this reform was to tackle disproportionate claims for costs.

The case of BNM and MGN Limited (see https://clarionlegalcosts.com/2016/06/10/who-needs-fixed-costs/#more-876) is an interesting case to consider in relation to the new test of proportionality, where a bill of costs was reduced from £167,389.45 to £83,964.80 on the basis of proportionality. This is one of the first cases to really demonstrate the power of CPR 44.3 (2) (‘Jackson test of proportionality’), which states:

Where the amount of costs is to be assessed on the standard basis, the court will –

(a) only allow costs which are proportionate to the matters in issue. Costs which are disproportionate in amount may be disallowed or reduced even if they were reasonably or necessarily incurred; and

 (b) resolve any doubt which it may have as to whether costs were reasonably and proportionately incurred or were reasonable and proportionate in amount in favour of the paying party.

 This ‘Jackson test of proportionality’ is something that has primarily been having an impact on civil and commercial claims for costs, however, we (Court of Protection Costs team at Clarion) are now starting to see the new test being applied to Court of Protection cases.

Under the new test, the Senior Courts Costs Office must assess a bill of costs (line by line) and determine what is reasonable. Thereafter, the new test of proportionality can be applied. The Costs Officer has the power to stand back and ask ‘was this a proportionate sum to incur on this matter taking into account all the factors relating to the case’, and in some instances, the answer can lead to significant further reductions to a Bill of Costs.

Going forward, we believe that this is something that will have an impact on Court of Protection cases. Not only will your costs be assessed based on what was reasonably incurred, but the SCCO can also consider other factors, such as the value of the Protected Party’s estate and other non-monetary influences when considering whether the assessed (reasonable amount) is proportionate.

We considered a recent assessment whereby the Protected Party’s estate was worth approximately £46,000.00. The Deputy submitted a bill of costs totalling £12,200.00. The bill was provisionally assessed at £11,500.00, but was thereafter limited to £9,000.00 due to the issue of proportionality, as a result of the value of the estate.

There is no guidance as to what is proportionate in these cases, however, the Costs Officer has the authority to determine what is proportionate at their own discretion. It will be interesting to see how this is applied going forward and whilst this area is still developing, requests for reviews or appeals may be appropriate. Albeit the financial position of the Protected Party is key, other factors such as the conduct of the Protected Party, the complexity of the matter and any key elements (international and business) may be influential in justifying your claim for costs.

If this is something which you require assistance with, please do not hesitate to contact myself or our team at COPCosts@clarionsolicitors.com.

Getting paid in the COP

In the Court of Protection, most Orders will contain a clause entitling the professional Deputy to be paid for their work. This clause therefore entitles you to take fixed costs, or have your costs assessed, subject to the terms of the Order.

We therefore wanted to explain the basis of assessment, to clarify how your costs will be paid. The Civil Procedure Rules, Part 44.3 states that when assessing costs on the Standard Basis, “only allow costs which are proportionate to the matters in issue. Costs which are disproportionate in amount may be disallowed or reduced even if they were reasonably or necessarily incurred.”

Upon assessment, your costs are subject to the Costs Officer’s discretion and as a result, it is crucial that you evidence the work that you have done.

Recently, new Professional Deputy Costs Guidance has been released by the Office of the Public Guardian and the SCCO, which states that where evidence of the work carried out is not on the file (by way of file notes) the time spent could be disallowed. The Deputy must “resolve any doubt as to whether costs were reasonably and proportionately incurred or were reasonable and proportionate in amount in favour of the paying party.”

 In order to show that your costs were reasonably and proportionately incurred, we recommend that you prepare file notes for the work undertaken, detailing the following:

 

    1. What you did
    2. How long it took you
    3. Who did the work
    4. When you did it
    5. Why you did it
    6. What action needs to be taken

 

Points 5 and 6 are particularly important in order to resolve any doubt in the Costs Officer’s mind. If you’re attending upon the Protected Party for the third time that year, tell the Costs Officer why it was necessary and what the next steps are to progress the matter. If you do not progress the matter in any way or it was unnecessary for you to do that work, it is unlikely that you will get paid.

If you have any queries about how to appeal an assessment or any general questions, please do not hesitate to get in touch and we would be more than happy to assist you. Please contact CopCosts@clarionsolicitors.com or call 0113 246 0622.

Professional Deputy Costs Guidance

You should all now be aware that the Office of the Public Guardian and the SCCO have issued some guidance in respect of Professional Deputy Costs. In summary, here’s what you need to know:

  1. The SCCO Guideline Hourly rates will be allowed, except in exceptional circumstances
  2. Routine tasks such as arranging payments or checking bank statements should be delegated to a Grade D fee earner at best. There are also times when use of a non-fee earner would be considered appropriate
  3. Three minutes will generally be allowed for arranging payments of any kind
  4. One home visit per annum is appropriate, but more may be acceptable dependent on the needs of the case. Excessive contact with all parties should be limited
  5. Work in respect of welfare is not recoverable, without permission from the COP
  6. One senior fee earner will be allowed at investment strategy meetings
  7. File notes must be present to evidence the work carried out
  8. Office overheads ie. Research, perusing incoming correspondences, internal communications and supervision are not recoverable
  9. Three minutes will be allowed for short, routine correspondences
  10. Litigation costs should be appropriately claimed within the litigation proceedings
  11. Grade D rates will be allowed for the preparation of the bill of costs
  12. In hardship cases (net assets below £16,000.00), professional costs must be limited to 4.5% of the Protected Party’s estate per annum
  13. On the client’s death, professional costs should be agreed with the executor of the estate
  14. The OPG105 must be submitted to the SCCO with the bill of costs
  15. Bills of costs should be prepared and submitted on an annual basis

For further information, please go to the following link:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/538901/19_07_16_Professional_deputy_costs__FINAL.pdf

If you have any queries, please do not hesitate to get in touch and we would be more than happy to assist you. Please contact CopCosts@clarionsolicitors.com or call 0113 246 0622.