Conduct and service

Exceeding an estimate

Judging from telephone calls received by Lawyer Line recently, an issue causing problems is the question of charges exceeding a stated figure for a particular item of work when the solicitor is later involved in doing extra work that was not originally contemplated.

The scenario is often that the solicitor gives the client a fixed price to do a particular piece of work.

He confirms that in writing, going on, in the same letter, to give the client information about his normal charge-out rates in the event of further work being required.

Then, later, the solicitor is asked to do further work and renders a bill incorporating a charge for the extra work, to which the client then objects.

Two examples illustrate the problem.

In the first, the solicitors who were already acting for a client in legally-aided matters, attended him at the police station, where they assured him the client that there would be no charge to him for their services at the station.

They confirmed this in a letter, in which they also told him what their charge out rate would be if they were asked to do further work outside the station.

Later, the police wrote direct to them with further queries, which they dealt with, but without telling the client, to whom they then sent a bill.

The second was more subtle.

The solicitors were asked to draft and file a defence in a small claims case.

They gave a specific figure for doing so, which they confirmed in writing.

Again they said that, if they were required to do additional work, additional charges would be incurred, and quoted their charge-out rates.

They were later sent a questionnaire by the court, which they dealt with and later, the client asked them to prepare his witness statement.

When sending the statement to the client, they told him of the higher figure they would now be charging.

In both cases the client objected to the 'extra' charges.

The solicitors both felt indignant, saying that the client must have known they were doing extra work, for which they had indicated to the client there would be a charge.

The problem is that the supply of services, of any type, is not like buying five kilos of potatoes.

If you are told how much five kilos cost and you ask for six kilos, you know you will have to pay more.

On the other hand, no matter what people are told about the supply of services, they always expect that little bit extra for nothing.

So, if you want to avoid getting involved in time-consuming disputes, as soon as you know you intend to charge a client more than a stated figure - tell him before you do the work.

He then has the opportunity to tell you not to bother.

l Every case before the compliance and supervision committee is decided on its individual facts.

These case studies are for illustration only and should not be treated as precedents.

Lawyerline

Facing a complaint? Need advice on how to handle it? Get in touch with Mike Frith at LAWYERLINE, the support service offered by the Office for the Supervision of Solicitors, tel: 0870 606 2588.