1. Matter numbers

Always check to see if there are various matter numbers, which is a way solicitors 'pick up' odd bits of time or disbursements from matters which have either been billed or do not, on their own, merit a professional fee.

 

2. Matter Description

The fee for non-contentious business is governed by the Solicitors' (non-contentious business) Remuneration Order 1994, contentious costs in the High Court by RSC Ord 62 and in the County Court by CCR 38. As non-contentious and contentious costs have two separate methods of charging, work done litigation and property cannot appear in the same bill.

 

3. Narrative

The bill must contain sufficient information to enable the client to obtain advice as to taxation (Haigh v Ousey [1857] 7 E & B 578), and the Taxing Master to tax it (Slingsby v AG [1918] p236). A bill merely stating 'For professional services' is void (Cook on Costs p63).

 

4. Professional fee

This figure has obviously come from the computer time-recording system. I would request a breakdown of the time spent and rate charged by each fee earner.

 

5. Disbursements generally

All disbursements should be marked as paid or unpaid according to s67, Solicitors Act 1974, Authority of the client should be obtained prior to the solicitor incurring expenses and the client informed of the likelihood of recovery of this expense inter parties (RSC Or 62 r 15).

 

6. Air fares

Payment to the travel agent by the client would avoid the VAT charge.

 

7. Copying, faxing and phone charges

The Adjudication and Appeals Committee of the Law Society regards its practice of charging for copying, telephone use and faxing as unacceptable (unless of an exceptional nature). On taxation, such disbursements are regarded as overheads and not allowed. In Johnson v Reed Corrugated Cases Ltd [1992] 1 All ER 169, a claim for over 10,000 pages of photocopying was disallowed in full as it was not exceptional in the circumstances of the case and formed 'part of the solicitors' normal overhead charges'.

 

8. Incidental expenses

Common sense dictates that a breakdown of this item should be obtained.

 

9. Legal Costings Limited

The fee relates to the detailed preparation of the bill of costs. If a solicitor outsources this type of work to a costing agency/draftsman it should not be charged as a disbursement as it forms part of the firm's overheads. Johnson v Reeds Corrugated Cases [1992] 1 All ER 169.

 

10. Total

The total is incorrect. It is £1,000 to high.

After quality of advice, value for money comes top of priorities for any client instructing a solicitor. This section provides a guide to solicitor's costs and bills.

 

Charge-out rates

Although most firms have hourly rates for fee earners, graded by seniority, both firms and clients report that the hourly rate is becoming less significant as a means of billing. Blended rates (the same hourly rate regardless of seniority) are increasingly popular, and many firms are quoting fixed fees. Most of the firms we approached make billing and costs arrangements to suit the individual needs of the client.

The Legal 500 carried out a survey of firms (mainly of 20 plus partners) throughout the country, inviting them to provide details of their charge our rates on a strictly non-attributable basis. The survey was not designed to cover all firms in a region, but to give a sample of the range of rates for larger commercial firms.

 

Unfortunately, there remains an element of secrecy surrounding charge out rates and some firms were reluctant to provide details, even on a confidential basis. We feel that clients would benefit from greater transparency on the whole issue of costs and would encourage clients to discuss the options available.

 

Billing

The Legal 500 has produced some guidelines aimed at preventing unpleasant shocks when a solicitor's bill lands on your desk. The most important thing is not to be put off discussing billing or costs with your solicitor at an early stage. We suggest readers consider the following approach:

§      Discuss and agree hourly rates at the outset. (When instructinmg a firm for the first time the firm will generally set our their rates in a client care letter);

§      Ask to be notified when there is a change in fee earners working on the matter as well as any change in hourly rates;

§      Ask about the firm's photocopying/telephone/fax charges, secretarial overtime and paralegal charges. Check whether these are incorporated into the hourly rate. If not, find out the circumstances where you will be expected to pay;