In a continuing series, the Law Society's practice advice service offers guidance on a range of issues
Q How does the Law Society calculate its interest rate for late completion?
A The Society's interest rate is 4% above the base rate for the time being of Barclays Bank. The rate is published weekly in the In Practice section of the Gazette and monthly in the Gazette's 'Data Page'.
Q I am a solicitor and would prefer to conduct my own personal injury case in the county court and not instruct my firm to act for me. Would I be able to recover any of my costs in doing so?
A Yes. A solicitor acting for himself is regarded as a litigant in person (see rule 48.6(6) of the Civil Procedure Rules). The rule provides that a litigant in person may be awarded up to two-thirds of the costs and all the disbursements that would have been allowed if the litigant in person had been represented by a legal representative.
In quantifying the costs for time spent on the litigation, the litigant in person will be allowed his financial loss for doing the work on the case and a copy of the evidence proving financial loss must be served on the paying party at least 24 hours before the assessment hearing (see paragraph 52.2 of the costs practice direction supplementing CPR 43-48).
Q I am acting for the tenant in a transaction in which my client is required to pay the costs of the landlord's solicitor. I have just received details of these costs, which are excessive. What can I do?
A The tenant is not entitled to ask the landlord's solicitors to obtain a remuneration certificate because he is not their client. However, the tenant can ask the landlord to request a remuneration certificate from his solicitors, although there is no obligation on him to do so.
As a matter of practice, the Law Society will accept an application for a remuneration certificate in such circumstances, but only if the landlord consents. In appropriate cases, the Society's council would hope that landlords' solicitors will encourage their clients to give such consent.
If the landlord is unwilling to give such consent, the tenant is entitled to apply to the High Court for assessment of the bill under section 71 of the Solicitors Act 1974. Note that the Leasehold Valuation Tribunal can determine costs payable by tenants and landlords in a variety of cases.
Q What is the difference between an interim bill and an interim statute bill?
A Interim bills are simply requests for payments on account of a final bill to be delivered at a later date. It is not possible to sue on this type of bill and a client cannot apply for assessment of it.
However, interim bills should be distinguished from interim statute bills. The latter comply with all the requirements of the Solicitors Act 1974 and result in all the consequences that flow from such compliance. Solicitors can sue on them and clients can apply for assessment of them. They are final bills in respect of the work covered and cannot be adjusted at a later date.
Interim statute bills are not widely used and can arise in two ways. Firstly, a natural break; however the Law Society's advice is not to rely on this ground except in the clearest circumstances (see Chamberlain v Boodle and King [1982] 3 All ER 188 CA for further guidance).
Secondly, by agreement with the client. However, practitioners should make it absolutely clear in their retainer letters that they propose to deliver interim statute bills in the event of protracted work.
For additional information see the Law Society's practice advice service's Contentious Costs booklet.
Q When may I start charging interest on unpaid costs?
A If the matter is non-contentious, you may charge interest on the whole or outstanding part of an unpaid bill from one month after delivery of the bill, provided written notice has been given to the client of the right to request a remuneration certificate and of the right to seek assessment of the bill
by the court.
If the matter is contentious, you may charge interest:
l if the right to charge interest has been expressly reserved in the original retainer agreement; or
l if the client has later agreed to pay it for a contractual consideration; or
l where you sue the client and claim interest under section 35A of the Supreme Court Act 1981.
For additional information, see principles 14.10 and 14.11 of the Guide to the Professional Conduct of Solicitors, 8th edition, available online at: www.guide.lawsociety.org.uk, or from the Law Society bookshop, tel: 020 7320 5640.
Q I have a client who has asked me to prepare an enduring power of attorney in favour of her daughter. Does the Law Society produce any guidance notes?
A Yes, the Society has produced a booklet called Enduring powers of attorney. This can be found on the Law Society website: www.lawsociety.org.uk, or obtained from the practice advice service (see contact details below).
Q Can I act for a minor or person under a disability on a conditional fee (CFA) basis? If so, with whom do I enter into the agreement?
A Yes. Both patients and children (subject in the latter case to any order to the contrary made by the court; see CPR rule 21.2(3)) must have a litigation friend to conduct proceedings on their behalf. You would enter into the CFA with the litigation friend, who would sign the agreement. The law, rules and regulations relating to CFAs apply to patients and children in exactly the same way as they apply to everyone else.
Q I understand that there is a protocol for the resolution of probate and trust disputes. Where can I obtain this?
A A protocol for the resolution of probate and trust disputes has been produced by the Association of Contentious Trusts and Probate Specialists. This can be obtained from www.actaps.com.
This column is compiled by the Law Society's practice advice service, tel 0870 606 2522,
email: lib-pas@lawsociety. org.uk. Comments relating to the questions should be sent to Practice Advice Service Manager, The Law Society, 113 Chancery Lane, London WC2A 1PL. The service endeavours to ensure that the information provided is correct but does not accept liability for error or omission. Readers should bear in mind that this publication is intended for information purposes only and should not act on the basis of the information provided without verifying it first
No comments yet