help/adive needed re: soliciotrs costs...Soovy??
Discussion
A friend (builder) took a large construction company to court and won a case, and was awarded dmages approx £29k, and all costs.
Up until that point his solicito had invoiced him for all work done to the tune of £25k which he had paid in full.
After the case, his paperwork was sent to a draftsman for costing and it came back as work done valued at approx £29k. So, his solicitor has said that whatever costs he eventually gets from the construction co., he has to pay his solicitor £4k form it (£29k-£4k).
Surely though, his solicitor had already valued the work they had done, invoiced him, and he had paid it?
also, the other side are now arguing over the costs, and looks lie it will go back to court.
So, if it goes back to court, and he ends up getting no costs at all, does he still owe his solicitor the £4k?
Cheers
N1S
Up until that point his solicito had invoiced him for all work done to the tune of £25k which he had paid in full.
After the case, his paperwork was sent to a draftsman for costing and it came back as work done valued at approx £29k. So, his solicitor has said that whatever costs he eventually gets from the construction co., he has to pay his solicitor £4k form it (£29k-£4k).
Surely though, his solicitor had already valued the work they had done, invoiced him, and he had paid it?
also, the other side are now arguing over the costs, and looks lie it will go back to court.
So, if it goes back to court, and he ends up getting no costs at all, does he still owe his solicitor the £4k?
Cheers
N1S
Costs weren't certain to be awarded, so I don't see why he should pay the difference between invoiced and perceived value- it's not his fault that the firm underbilled him.
By that same token, surely costs awarded should only be to the tune of what he paid?
eta: stick this is speed, plod, law forum for better response.
By that same token, surely costs awarded should only be to the tune of what he paid?
eta: stick this is speed, plod, law forum for better response.
Edited by H_Kan on Thursday 23 December 13:23
H_Kan said:
Costs weren't certain to be awarded, so I don't see why he should pay the difference between invoiced and perceived value- it's not his fault that the firm underbilled him.
By that same token, surely costs awarded should only be to the tune of what he paid?
eta: stick this is speed, plod, law forum for better response.
Thanks mate.By that same token, surely costs awarded should only be to the tune of what he paid?
eta: stick this is speed, plod, law forum for better response.
Edited by H_Kan on Thursday 23 December 13:23
Mods, can this be moved please?
DavidHM said:
Why would he get no costs at all?
If he's won the case it'd have to be a very odd situation indeed were he to be awarded no costs.
He was awarded full costs, approx £29k, but the other firms solicitor offered £12k.If he's won the case it'd have to be a very odd situation indeed were he to be awarded no costs.
His solicitor has told him it will likely go back to court.
DavidHM said:
Why would he get no costs at all?
If he's won the case it'd have to be a very odd situation indeed were he to be awarded no costs.
If he hadn't won then its unlikely he would have. Not to mention that it can happen that a party wins but is awarded little or no costs (and/or has little hope of recovering them!)If he's won the case it'd have to be a very odd situation indeed were he to be awarded no costs.
If the other side has offered £12k they will be expecting to pay something (and probably considerably more than £12k). I wouldn't say that it's in the bag for anywhere near the full amount but given that he's been successful in litigation, he will be awarded some costs unless his conduct has been wholly unreasonable. If there is a real and substantial dispute that the other side defended, he ought to get back a significant amount of his costs.
In theory there is an amount of £29k on the table for him, although the Court is unlikely to award the full amount. The reason is that the solicitor can charge what the market will bear, and use any grade of fee earner for any amount of time. Obviously if they are over charging the client is free not to instruct and has chosen the representative on the basis of their fees. However, the Court will only award what is reasonable - for instance, using an appropriate grade of fee earner for an appropriate amount of time. Pure client care is not recoverable so if the case is not progressed by work done, the successful claimant remains the only one on the hook for that.
As for whether he will owe his solicitor anything ... it's hard to say. I'd certainly find it odd to render a supplemental bill based on the costs draftsman's figure, and odder still to expect the client to pay it if they're hoping to be instructed again in future. It may be permissible (are we sure that it's not for work done since the conclusion of the case in relation to costs negotiations) but there are also provisions in the Solicitors' Code of Conduct regarding invoicing promptly, etc. so I would certainly take a look at disputing a portion of the bill once the costs are concluded.
In theory there is an amount of £29k on the table for him, although the Court is unlikely to award the full amount. The reason is that the solicitor can charge what the market will bear, and use any grade of fee earner for any amount of time. Obviously if they are over charging the client is free not to instruct and has chosen the representative on the basis of their fees. However, the Court will only award what is reasonable - for instance, using an appropriate grade of fee earner for an appropriate amount of time. Pure client care is not recoverable so if the case is not progressed by work done, the successful claimant remains the only one on the hook for that.
As for whether he will owe his solicitor anything ... it's hard to say. I'd certainly find it odd to render a supplemental bill based on the costs draftsman's figure, and odder still to expect the client to pay it if they're hoping to be instructed again in future. It may be permissible (are we sure that it's not for work done since the conclusion of the case in relation to costs negotiations) but there are also provisions in the Solicitors' Code of Conduct regarding invoicing promptly, etc. so I would certainly take a look at disputing a portion of the bill once the costs are concluded.
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