Tag: clarion legal blog
Payment on Account or Final Invoices? – another solicitor/own client costs battle…
Since the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act 2013 (LASPO), solicitor/own client costs disputes have increased.
The case of Laurence Sprey -v- Rawlison Butler LLP [2018] is a good case to read for anyone who would like to learn more about solicitor/own client costs disputes. The principal issue in the case concerned whether monthly invoices (case funded under a discounted conditional fee agreement) delivered by the law firm to the client were ‘statute invoices’. The ultimate decision was not they were not ‘statute invoices’; the invoices were therefore open to challenge/assessment and were not ‘time barred’ pursuant to s70 of the Solicitors Act 1974.
It has always been important for lawyers to have a good understanding of the Solicitors Act 1974, but that has increased post LASPO, particularly for those lawyers charging (and deducting) success fees and ATE insurance premiums from clients’ damages under post 1 April 2013 Conditional Fee Agreements.
Paragraph 4 on page 2 provides some very useful information in relation to the types of invoices that can be raised (many lawyers do not know that they regularly raise a “chamberlain bill”). Paragraph 6 on page 2 helpfully sets out the time limits for a challenge.
Solicitor/own client costs disputes often arise because the retainer, terms of business and invoicing are not consistent with the lawyer/law firms’ intention. It is important to make sure that you know what invoices you want to raise and you have a process that is consistent with that intention and delivers the invoice you want – without confusion and costs litigation!
At Clarion, we have significant experience in solicitor/own client costs disputes. Therefore, please do not hesitate to contact us if you have any questions.
This blog was prepared by Andrew McAulay who is a Partner at Clarion and the Head of the Costs and Litigation Funding team. He can be contacted at andrew.mcaulay@clarionsolicitors.com or on 0113 336 3334.
Costs Budgeting is essential”, hails LJ Jackson.
“Costs Budgeting is essential”, hails LJ Jackson.
Jackson told a London Common Law and Commercial Bar Association event last night that:
“Costs budgeting is an essential element of any programme to make the costs of litigation proportionate”, and that:
‘Litigation is a commercial enterprise.’ He added ‘there are no other commercial projects which people enter without a budget” and that “some form of costs management or costs budgeting is essential.’ This echoes comments he made in his 2009 final report.
In Jackson’s final report in 2009 he said “Any measures to control the costs of a project are themselves a source of some expense. Quantity surveyors have to be paid professional fees for their services in monitoring the costs of a construction project and determining what amounts are payable at each stage or what sums are due in respect of variations. But no-one suggests that quantity surveyors should be dispensed with, in order to “save” the costs of employing them. The costs of any multi-track case can be substantial, ranging from tens of thousands of pounds to tens of millions of pounds. In other words, the costs of every multi-track case, unless it settles early, are comparable to at least the costs of a small building project and sometimes they are comparable to the costs of a major building project. There is precisely the same need to control the costs of litigation as there is need to control the costs of any other project”.
After 7 years since his report was written, 1 pilot scheme and the 3 year practical application of the amended Civil Procedure Rules, Jackson’s opinion on both the effect of costs management and the costs of the same, remains constant. Costs Management works and the costs of the same are a sensible part of the ‘project’.
Please follow this link to the Law Society Gazette’s article.
You can find out more about our services here or you can contact the Costs and Litigation Funding team at CivilCosts@clarionsolicitors.com