Study claims bills inflated

EXCESSIVE COSTS: research suggests almost a quarter of solicitors' claims are unjustified

Almost a quarter of costs claims made by solicitors are extortionate or unjustified, partly because conditional fees have provided an ideal breeding ground for the problem, new research has suggested.

The study of bills submitted by 7,000 solicitors since 1999 by assessors Cost Auditing claimed that 23.5% were over the top, with excessive claims for disbursements and use of experts two of the most common problems.

The research also blamed new practices such as 'planting' solicitors in clients' in-house teams with the purpose of increasing costs.

It found solicitors charging for a person carrying a bag to a meeting, for secretaries taking notes, and for takeaway pizzas ordered after hours.

There was even a claim for the 'making of time available to work on a case'.

The company's chief executive officer, Ian McLuskie, said the situation was more prevalent since legal aid was cut in personal injury cases.

'The onus was put on insurance to cover costs, making everything more intense,' he explained.

'Arguments over Callery v Gray have led to questions about what levels success fees and premiums should be set at.'

Mr McLuskie added that insurance companies were fed up with solicitors 'padding out' costs.

'If solicitors play fair, insurance companies will pay up,' he insisted.

Patrick Allen, president of the Association of Personal Injury Lawyers, said he was not aware of any evidence suggesting that claimant lawyers were trying to pull the wool over insurers' eyes.

'It was government policy to bring in success fees and insurance premiums, and these are added to the bill,' he said.

'You can't blame solicitors.'

A Law Society spokesman said the survey 'has all the appearance of a crude marketing ploy by a company that has an obvious interest in portraying law firms as inflating legal bills.

There is no evidence of widespread inflation of legal bills.

Indeed the evidence is to the contrary'.

Martin Staples, former president of the Forum of Insurance Lawyers, said the results came as no surprise: 'Padding claims is a problem that often arises because negotiators don't know what goes on in a case, and they are always out to save on claims.'

Paula Rohan