No costs information - no excuse

The requirement to give clients information about costs, in writing, at the outset of the retainer has been mandatory for more than ten years.

By and large, most practitioners now do so, though many could do much better.

It is not enough merely to tell clients the fee-earner's hourly charge-out rate, which gives them the basis on which the final bill will be calculated but no idea about how much it might be.

Some of the excuses offered by solicitors who have not fulfilled their obligations are ingenious, to say the least.

However, they are likely to succeed in only two instances.

The first is when repetitive work is done for the same client and, the second, when taking instructions for a death-bed will.

There are others where the solicitor might be excused for starting work without having given written costs information - for example, an application for an emergency injunction - but even then, the costs information could be given verbally and confirmed in writing at the earliest possible opportunity.

Lawyerline recently received a call which illustrated just how far this principle extends.

In this case, the solicitor had not received a complaint but, perhaps understandably, was expecting one.

The solicitor had taken on a claim for damage to his client's car under circumstances where he was, perhaps justifiably, sure he was going to win against a defendant who carried insurance.

Therefore, he decided that he would be content with whatever costs he could recover from the third party insurers.

For that reason, he did not bother giving any costs information to his client.

Unfortunately, the solicitor had failed to manage his client's expectations.

The client thought matters were taking too long and decided to instruct another firm who wrote and asked for the papers.

At this point, the solicitor raised a bill, to protect his costs position, and then claimed a lien.

It was at this stage that he anticipated the complaint.

He had to be told that, if his decision not to charge his client was based on the expectation that he would handle the claim from start to finish, the client should have been informed.

He could raise a bill and claim his lien but, if the complaint came to the Law Society, his bill was likely to be slashed dramatically.

He would be better advised to come to an arrangement with the new firm about payment of his costs when the matter was finally concluded.

Lawyerline

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