BIL ILLS OF COSTS Bills Obligations S68 Complaints about Charging - PowerPoint PPT Presentation

SOLICITORS BIL ILLS OF COSTS Bills Obligations S68 Complaints about Charging S9 Some Current Issues

Basis is for Bill ills SAR Reg eg 11(1 (1), 20(1 (1)(i) • Introduction • Instructions • Followed in accordance with client’s directions • “Cobbler’s restraint” Lord Jessop (1878) • Contract • Retainer • No relationship without it • In writing in the UK • Not Science • Instruction Fee

Basis is for Bill ills SAR Reg eg 11(1 (1), 20(1 (1)(i) RSC 99 Rule le 37 • Calculation of Instruction Fee • All factors to be taken into account • Two essential ones • Total Amount of time • Should be measured • Fair & Reasonable Market rate • Uplift or Effort Factors • Multiple of Time factor

Basis is for Bill ills SAR Reg eg 11(1 (1), 20(1 (1)(i) RSC 99 Rule le 37 Calculation of Instruction Fee • Taking instructions to sue, defend, counterclaim or appeal etc; • Considering the facts or the law; • Interviewing and Corresponding with the Client; • Selecting Experts • Arranging to obtain reports or advice from experts • Preparing & Reviewing plans, photographs and models; • Making searches in the public records office and elsewhere for relevant documents; • Inspecting any property or place material to the proceeding; • Perusing proceedings, affidavits and other relevant documents; • Where the matter does not proceed. the work done • The negotiation of a settlement; and • The general care and conduct of the pleadings.

Basis is for Bill ills SAR Reg eg 11(1 (1), 20(1 (1)(i) O 99 rule rule 37 (2 (22)( )(i) • Reasons for a Fee • Complexity • Urgency • Novelty • Difficulty • Specialised Knowledge

Basis is for Bill ills SAR Reg eg 11(1 (1), 20(1 (1)(i) • Reasons for a Fees (cntd) • Responsibility • Documents • Value • Importance • Time Spent • Places & Circumstances

Basis is for Bill ills SAR Reg eg 11(1 (1), 20(1 (1)(i) • Disbursements & Outlay [Reg 11(3)] • Taxation Implications • VAT • Exempt Clients & Transactions • VAT form 13B • Council Directive 2006/112/EC • Place of Supply Rules (Fourth Schedule Services). • Foreign Property Transactions (Foreign VAT) • VAT on Outlay • Must hold Practising Cert

Soli licitor/Cli lient and Party/Party Costs • Party/Party • Reasonably incurred... • ...for the purposes of the case... • ...which the other side is obliged to pay. • Necessary & Proper are allowed. • Solicitor/Client costs • Includes those not recoverable as P/P or • Otherwise agreed • Luxury of Payment

In Interim Billin illing SAR Reg egs 7(1) 7(1)(a)(iii) i), , 11(2 11(2) • Cashflow • Single most i mportant factor in Firm’s survival • Work in Progress • Unbilled Work Completed • Milestones • Danger Area • Debtors • Single biggest problem.

Taxing Costs (COA 1926, CA 1961 8 th Schedule, L(I)1883,1958, Order 99 Rule 33(1) RSC 1986, Appendix W RSC 1986) • Independent and Impartial • Assess Fair and Reasonable costs due to the other side. • Not for overcharging. (Law Society does this) • No regulatory powers • No investigative powers

Taxing Costs • When? • Interim application • End of case • How? • Requisition to Tax • Clients can do it themselves. • Stamp Duty

Taxing Costs • Detailed bill 1. Dates 2. Numbered Individual items of cost. 3. Particulars of services charged 4. Disbursements 5. Deductions to outlays (Fair & Reasonable) 6. Professional charges 7. Deductions to charges

Taxing Costs • Why? • Court Order • Arbitration • Discontinuance • Client demand • Acceptance of lodgements • Tribunal Orders

Taxing Costs • Cost Accountants • Can be expensive • Can introduce delays • Time limits • Client has 12 months

Sectio ion 68 • Notification - S68(1) SA 1994 • (on instructions to provide legal services to a client) • Who is a client? • What you will charge • Actual • Estimate • Basis • Litigation/Contentious Business - S68(1) SA 1994 • Client responsibility to pay costs of others either P/P or S/C contribution

Sectio ion 68 • Prohibition of Percentage charging – S68(2)SA 1994 • Contentious business only • Excludes Debt Collection • Otherwise unenforceable

Sectio ion 68 • No reduction of damages ... - S68(3) SA 1994 • … without agreement … – S68(4) SA 1994 • Can be at any time • … in writing with estimate of costs – S68(5) SA 1994 • i.e. Party and Party Costs recoverable

Sectio ion 68 • Reconcilation – S68(6) SA 1994 • Summary of services - S68(6) SA 1994 • Total amounts received - S68(6) SA 1994 • Damages • Costs • Other • Costs incurred -V- Costs recovered

Sectio ion 68 • Right to tax – S68(7) SA 1994 • On a complaint – S68(8) SA 1994 (S9 SA 1994) • Attempt to resolve matter. • Inform the client that: • Client can require taxation - S68(8)(b)(i) • Client can complain to Law Society - S9 SA 1994, S68(8)(b)(ii)

Sectio ion 9 • Right to Impose Sanctions for overcharging S9 SA 1994 • Must be a complaint – S9(1) • Attempt to resolve matter. • Can Direct the Solicitor to: • Refund in whole or in part – S9(1)(a) • Waive right in whole or in part S9(1)(b))

Sectio ion 9 • Can still Tax S9(2) • Apply for Taxation s9(3) • If application to tax then No Direction will be made • Unless unreasonable delay by Solicitor • Once Taxed s9(4) • Stops investigation into complaint • Removes any direction to Solicitor

Sectio ion 9 • Proceeding prohibited S9(5) • Once Solicitor is notified of a complaint. • Cannot be instituted • Cannot be continued • 5 year time limit for complaint s9(6) • Power to make rules s9(7)

Current Is Issues Probate • Interim Billing • Absence of Billing • No agreement on Billing • Not following section 68 • Administration and Distribution Accounts • No accounting to client • Overcharging • Witnessing wills

Current Is Issues • Employee Fraud • Assistant Solicitors • Employees • Bookkeepers

Current Is Issues • Stamp Duty • Client’s Obligation • Solicitor’s obligation • Who is at fault?

Current Is Issues • Bookkeeping • Debit Balances • Credit Balances on Office Account • Failure to record bills • Failure to record S&C bills • Backdating entries • Delays in identifying source of funds • Conflict of interest

Current Is Issues • Borrowing Money from Clients • Client’s Agreement required • No documentary evidence of client understanding or agreement • Waiver of claim on compensation fund • Independent Legal advice • Conflict of interest

Current Is Issues • Other matters • Old Balances • Undertakings • Updating Deeds • Money Laundering • Personal Money in Client Account

Current Is Issues • Other matters • Money in client account but no service provided • Office Expenses, PI, Tax paid from client account • Collusion with Executors

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