LCR Bills & Assessment Flashcards
Interim Payments on Account – good for cashflow and if don’t keep good WIP
- Interim payments on account –
- S.65 (1) SA 1974 - allows solicitors to (2) and to
- Wong v Vizards –
- Turner and Co v O Palomo –
- Solicitor Account Rules Only -
Interim Payments on Account – god for cashflow and if don’t keep good WIP
1. Interim payments on account – request for payment, can’t sue
2. S.65 (1) SA 1974 - allows solicitors to be paid on account (contentious business) (2) and to terminate if don’t pay
3. Wong v Vizards – unreasonable sum = not good cause to terminate
4. Turner and Co v O Palomo – Remedy to terminate if payment isn’t made
5. Solicitor Account Rules Only bill work done
Statute Bill – 2x types Interim & Final
6. S69(1) SA1974 –
- S69(2) SA 1974–
- Kingston Solicitors v Reiss –
- Carter-Ruck v Mireskandari –
Statute Bill – 2x types Interim & Final
6. S69(1) SA1974 –can sue, but not before 1 month (exceptions e.g. C about to quit UK, become bankrupt)
7. S69(2) SA 1974– Signed and delivered – requirements for Bill b4 can sue (payment can only occur after compliant bill delivered)
8. Kingston Solicitors v Reiss – Demand for payment
9. Carter-Ruck v Mireskandari – Insufficient detail – type of work and when it is done
Interim Statute Bill
10. Underwood v Lewis –
- Can be rendered when -
- Wilson v William Sturges –
- Abedi v Penningtons –
- Davisons v Jones-Fenleigh –
- S64(1) SA1974 -
- S64(2) SA1974 -
Interim Statute Bill
10. Underwood v Lewis – entire contract
11. Can be rendered when - Agreement and natural break
12. Wilson v William Sturges – natural break (such as stay)
13. Abedi v Penningtons – express or conduct - solicitors were entitled to submit bills of costs on an interim basis by virtue of an inferred agreement.
14. Davisons v Jones-Fenleigh – if client pays in full, undisputed, then be inferred that it is a statute bill
15. S64(1) SA1974 - ISB’s can be Detailed or gross
16. S64(2) SA1974 - 3 months to request detailed if received Gross
Assessment Solicitor/Client Costs – If C unhappy can apply for order or DA
17. S. 74(3) SA 1974 –
- CPR 46.9 -
- CPR 46.9(2) - s 74(3) SA 1974 applies UNLESS
- Belsner v Cam Legal Services Ltd [2022]:-
- s 74(3) SA 1974 does not apply to
- CPR 46.9(2) does not require
- Solicitor was in breach of - S 70(1) SA 1974 –
- S 70(2) -
- ## S 70(3) - No order on ‘late’ application by client:
- S 70(4) -
- Oakwood Solicitors v Menzies [2024] -
Assessment Solicitor/Client Costs – If C unhappy can apply for order or DA
17. S. 74(3) SA 1974 – Amount allowed on assessment not to exceed amount allowed on party - party assessment.
18. CPR 46.9 - Basis for DA of solicitor/client costs. Does NOT apply to bills paid from Community Legal Service Fund (Legal Aid)
19. CPR 46.9(2) - s 74(3) SA 1974 applies UNLESS solicitor and client have entered written agreement which expressly permits payment of amount greater than could have recovered inter partes
20. Belsner v Cam Legal Services Ltd [2022]:-
- s 74(3) SA 1974 does not apply to ‘non-contentious business’, such as claims settled through the RTA ‘Portal’, as no proceedings are issued
- CPR 46.9(2) does not require ‘informed consent’ to written agreement
- Solicitor was in breach of professional duty to give client ‘best possible information’ about pricing and likely overall costs of case
21. S 70(1) SA 1974 – If, within one month of delivery of [Statute] bill, client applies for bill to be assessed – High Court shall order: a) assessment of bill; b) no action commenced on bill pending assessment
22. S 70(2) - No application within 1 month = Application by solicitor, or late application by client – Court may order assessment/stay of proceedings
23. S 70(3) - No order on ‘late’ application by client:
- if made more than 12 months after delivery of bill,
- after judgment obtained,
- within 12 months of payment of bill
- UNLESS ‘special circumstances’. Order for assessment, if made, on terms as to costs of assessment
24. S 70(4) - No power to order assessment and/or stay of proceedings if application made more than 12 months after payment of bill.
25. Oakwood Solicitors v Menzies [2024] - Supreme Court ruled that ‘payment’ required client’s agreement to the precise sum being paid, rather than just accepting delivery of bill and deducting amount of bill from damages. Note: This decision reversed the Court of Appeal decision from 2022.
Assessment Proceedings
26. CPR 46.10 –
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Assessment Proceedings
26. CPR 46.10 – Sets out Assessment Procedure, including:-
- Solicitor to serve breakdown of costs within 28 days of order for assessment
- Client to serve points of dispute within 14 days
- Solicitor to serve reply within 14 days
- Either party may request hearing date after PODs served, but no later than 3 months after order for assessment
- Timetable subject to contrary orders made by court Assessment Proceedings
After the detailed assessment hearing is concluded, as prescribed by CPR PD 46, 6.19, the court will:
- complete the court copy of the bill so as to show the amount allowed;
- determine the result of the cash account;
- award the costs of the detailed assessment hearing in accordance with section 70(8) of the Solicitors Act 1974; and
- issue a final costs certificate.
Costs of Assessment
27. S.70(9) SA 1974 - states that
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28. S. 70(10) SA 1974 -
Costs of Assessment
27. S.70(9) SA 1974 - states that
- the costs of assessment should generally be subject to the “one-fifth rule”. –
- If the costs are reduced by 1/5 or more of the amount of the statute or gross sum bill, then the solicitor will pay the costs and if it is not, then the client will pay the costs.
28. S. 70(10) SA 1974 - as with most costs orders, the court retains discretion to make an order for costs as it sees fit if there are special circs. relating to the bill or assessment
Interest on Costs
29. Contentious Business -
- Non Contentious Business -
Interest on Costs
29. Contentious Business - no auto right to charge interest. If no agreement between solicitor and client, solicitors left to rely on s,35A of the SCA 1981 or section 69(1) of the County Courts Act 1984 to recover interest. These sections empower the court to award interest from the date when payment was due.
30. Non Contentious Business - There is no power to deprive a solicitor of interest on his bill under the Solicitors’ (Non-Contentious Business) Remuneration Order 2009. Lake v Hunt Kidd Law Firm LLP [2011] EWHC 766 (QB) considered whether the court has any discretion to disallow interest due on a solicitor’s bill to its client in non- contentious work. In this case the Client contended that interest should be allowed at less than 8% but the court held that it had no power or discretion to disallow interest.
Lawyers Right to Recover Costs
31. No. of practical factors lawyers need to consider before deciding what steps to take to recover costs from clients, for example:
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Lawyers Right to Recover Costs
31. No. of practical factors lawyers need to consider before deciding what steps to take to recover costs from clients, for example:
-the liquidity or ability to pay of the client in question;
-the amount of lost fee earning time it is going to take to pursue the client; and
- the potential complaints that may be made against the firm, including allegations of negligence.
