Litigation fee(s)

Dingle_berry

Apologies for what may be simple questions but other threads on the topic have prompted me to ask. So my (limited) understanding is that a solicitor is obliged to give their client an estimate of the cost of the case - called a section 150 letter or something similar.

Is this only for litigation or for all services?

Is it an estimate or a contract? E.g. if obvious errors were made could the client request a reduction.

If the solicitor offers a "no win, no fee" type of arrangement must this be reflected in the section 150 letter? (I understand that solicitors can't advertise their services as this but can offer it based on the merits of the case?). Or would doing so somehow affect the awarding of costs?

Is the section 150 letter used to calculate costs awarded?

Dingle_berry

Anyone?

hullaballoo

Hi, yes they are obliged to provide a section 150 letter setting out how fees are to be charged when asked to do so. Alternatively, fees can be agreed (e.g. at a fixed rate) under section 151. If they don't provide a section 150 letter or if the letter does not set out fees they later purport to charge, there is a reasonably watery provision that says a costs adjudicator "shall not confirm" the fee (i.e. won't award it to the solicitor in a dispute over fees) unless this would "create an injustice between the parties."

I imagine the purpose of the latter provision is to protect the poor and downtrodden solicitor from financial hardship where their client is an economic behemoth. It is difficult to imagine what "injustice" might be created between the parties if a solicitor doesn't get fees they never mentioned until it appeared in the bill of costs.

To be clear, they are obliged to provide this letter for all work, not just litigation.

No win, no fee obviously only applies in litigation. I'd describe it as advertising puff more than an actual basis for charging. I've seen some people say it's illegal to provide legal services on a no win no fee basis but this isn't true. It's just a narrow waiver in respect of certain fees in litigation. In reality, if you lose a case, you'll still face legal fees from the other side and many times your own solicitor's out of pocket expenses too.

Dingle_berry

hullaballoo wrote: »

No win, no fee obviously only applies in litigation. I'd describe it as advertising puff more than an actual basis for charging. I've seen some people say it's illegal to provide legal services on a no win no fee basis but this isn't true. It's just a narrow waiver in respect of certain fees in litigation. In reality, if you lose a case, you'll still face legal fees from the other side and many times your own solicitor's out of pocket expenses too.

Are the waived fees standard for "no win, no fee" cases? Or are they defined between the solicitor and client?

Is the section 150 letter used when awarding costs? Or can a solicitor add in costs that they would have waived for their client?