Lawyers’ costs

At the beginning of the case, the Lawyer must give you information about the likely cost of the case and how the charge is calculated, for example, a fixed fee, an hourly rate or a percentage fee.

In some cases, for example, personal injury cases, you may enter into a conditional fee agreement with the Lawyer. This means that if you lose the case, you will have to pay the costs of the other side and, depending on the agreement, the Lawyer’s expenses and any barrister’s fees. If you win the case, you will have to pay the Lawyer’s fee at the higher rate. Generally, only people who are not receiving Legal Aid can enter into a conditional fee agreement.

If you are considering entering into a conditional fee agreement, you must be clear what the terms of the agreement will entail and you should consult an experienced adviser for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.

In all cases, the Lawyer must discuss how the costs are to be met and whether you are eligible for Legal Aid. If the Lawyer does not do Legal Aid work, they must still explain the advantages of Legal Aid services to you if you are eligible, and give you the opportunity of going to a Lawyer who does Legal Aid work.

The Lawyer must keep you informed about the costs throughout the case.

If the Lawyer is holding your money, it must be kept in a separate deposit account and you maybe entitled to interest.

The Lawyer’s bill

You should get your bill within a reasonable time after your Lawyer has finished the work they have done for you, and it will be made up of three elements: disbursements, VAT and fees.

Disbursements are the expenses the Lawyer has had to pay out on your behalf, for example, fees paid to court and barristers’ fees.

Fees cover the professional services carried out by the Lawyer on your behalf. If the work was court work, the fees that the Lawyer can charge are subject to court rules. There are no scales that regulate non-court work, but the charges must be fair and reasonable. VAT will be charged on the fees and some disbursements.

If you think the bill is too high, you can:-

• ask the Lawyer for a detailed account
• in some cases, ask the Law Society to look at the bill
• ask a court to look at the bill.

Getting a detailed bill from the Lawyer

You can write to the Lawyer asking for full details of how some or all of the charges on the bill were worked out. This letter should also include a request for a written reply. Items such as stamp duty for buying a house are fixed amounts and cannot be questioned.

Asking the Law Society to look at the bill

This procedure only applies to work which does not include court work. You can, within one month of receiving the bill, ask the Lawyer to obtain a remuneration certificate which approves it or reduces it. There is no charge. You must pay half the bill and VAT and disbursements before applying for a remuneration certificate. Disbursements cannot be questioned. There is a time limit for applying for the remuneration certificate. It is usually one month but may be longer in some circumstances. The Lawyer may also agree to waive the time limit. You should check the relevant time limits with the Consumer Complaints Service (see below).

The Remuneration Certificate Department of the Law Society deals with applications and queries. It is based at:-

The Consumer Complaints Service
The Remuneration Certificate Department
Victoria Court
8 Dormer Place
Leamington Spa
Warwickshire
CV32 5AE
Enquiry line: 0845 6086565
Fax: 01926 431435

The Law Society of Northern Ireland can advise you about disputing a Lawyer’s bill. However, you should first request a meeting with the Lawyer and if you are still not satisfied, you can contact the Remuneration Certificate Department of the Law Society of Northern Ireland at:-

The Renumeration Certificate Department
The Law Society of Northern Ireland
Law Society House
90-106 Victoria House
Belfast
BT1 3J2
Tel: 028 9023 1614
Fax: 028 9023 2606
Email: info@lawsoc-ni.org
Website: www.lawsoc-ni.org

Asking a court to examine the bill

This procedure can be used for any work done by a Lawyer, including court work, and is known as assessment.

The court can examine the whole bill, and can either approve it or reduce it. If the reduction is more than one-fifth, you will not pay the costs of assessment.

For non-court work, the court which assesses the bill is the High Court in London. Where court work is involved, the bill will be assessed by the court which dealt with the case. If you are getting Legal Aid, your bill may be assessed by the Legal Services Commission.

If you ask for assessment within one month of getting the bill, the court must assess it. Between one month and a year, the court decides whether to agree to assessment of the bill; after a year it is very unusual for the court to agree.

The court cannot agree to assess the bill if it has been paid and more than one year has gone by.

You can ask the court to examine the bill even if you have signed a conditional fee agreement.

If you have problems paying a Lawyer's bill, the Lawyer might insist on immediate payment. They could also charge interest on bills for non-court work after a month. However, they may agree to let you pay your bill in instalments.

An experienced adviser's help will usually be needed to assess whether you should challenge a Lawyer’s bill, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.