Solicitors Act 1974 meaning

This Checklist outlines how to secure an order for assessment of costs owed to a solicitor by their client, together with the steps to be taken. CPR 46.10 sets out the assessment process and identifies the court documents that must be filed. Timing in which an application for assessment must be made Section 70 of the Solicitors Act 1974 (SA 1974) provides the route by which either the solicitor or the ‘party chargeable’ (usually the client) may seek assessment of the solicitor’s bill. When proceeding under SA 1974, s 70, timing is crucial because strict deadlines apply. Whether the invoice has been paid is also material. Under SA 1974, s 70(1), if the client asks for assessment within one month of delivery of the bill, the solicitor is barred from starting any action on the bill, and the client is entitled to an assessment as of right without paying any sum into court...

PI & Clinical Negligence weekly highlights—15 February 2024 In this issue: Road traffic accidents Clinical negligence Costs Court and the legal profession Other PI and clinical negligence news Daily and weekly news alerts Useful information New Q&As Road traffic accidents Pure economic loss and remoteness In Armstead v Royal & Sun Alliance Insurance Company Ltd [2024] UKSC 6, the Supreme Court held that a bailee’s possessory interest in goods is sufficient to found a claim against a third party whose negligence damages those goods. The appeal succeeded: a car-hirer was entitled to sue the negligent third party in tort to recover the contractual daily loss-of-use sum owed to the vehicle owner (the bailor, hire company) arising from the damage. The court also issued succinct guidance on core principles governing negligence claims for harm to tangible property, and on the limits of remoteness. Further, the Supreme Court confirmed that once a claimant has shown that...

Signature Litigation LLP v Ivanishvili [2024] EWCA Civ 901 What are the practical implications of this case? The Court of Appeal used this case to restate a well-known worry: as Lord Justice Coulson observed at [22], the 1974 Act has been widely criticised for not being updated to reflect modern practice. When the SA 1974 came into force, conditional fee agreements (CFAs) were unlawful, and retainers were largely based on an ‘entire contract’ model, allowing costs to be fully quantified for any period while litigation was ongoing. That is not the position with conditional fee retainers, where the total costs payable (covering all additional liabilities) cannot be fixed until the litigation has concluded. Accordingly, solicitors should note that under any CFA—even a ‘discounted CFA’—interim invoices will not be final statute bills if an additional fee is intended to be added to that invoice once the case ends. In practical terms, this means an interim bill, even if presented and paid, may not be final for a considerable time,...

Court of Appeal highlights differences between applications for assessment under section 71(3) of the Solicitors Act 1974 (SA 1974) and applications for assessment under SA 1974, s 71(1) (Daniel Kenig v Thompson Snell & Passmore LLP) Daniel Kenig v Thompson Snell & Passmore LLP [2024] EWCA Civ 15 What are the practical implications of this case? The bills at issue, issued between 17 October 2021 and 2 August 2021, totalled £54,410.99 plus VAT. Although an initial estimate of £10,000.00 to £15,000.00 was cited, they will, it appears, now be remitted back to the SCCO for an actual assessment. It seems highly probable that the sums claimed will be materially pared back once the expense of the appeal is taken into account. Notably, an application for assessment under SA 1974, s 71(3) permits the consequences of any assessment to be placed at multiple doors...

This Practice Note addresses regulatory obligations and practical considerations concerning the layout and substance of a client’s final bill of costs, including situations where an interim statute bill has been issued. It also sets out how interim bills should be dealt with when you come to serve your final bill. While the words ‘bill’ and ‘invoice’ are often treated as interchangeable, this Practice Note consistently uses the term ‘bill’. There is no specific statutory or regulatory prescription for the precise form or contents of a client’s final bill. However, that does not entitle you to present the bill in any format you wish. You must ensure that you: comply with the information and related obligations in the SRA Standards and Regulations, which, though not directed at bills expressly, do apply to your bill in an indirect way are able, if the bill remains unpaid, to take action to recover your costs Contentious and non-contentious work Some of the requirements outlined in this...

This Practice Note outlines how to obtain an order for assessment and the steps to follow if one is made, including the necessary documents and evidence, the assessment hearing, and who bears the assessment costs. The provisions governing the assessment of solicitors’ costs are in CPR 46 and CPR PD 46 at para 6.1 onwards. Throughout, the Solicitors Act 1974 is abbreviated to SA 1974. For further information on: a client’s entitlement to seek an assessment—see Practice Note: Solicitor and client costs—rights to an assessment the High Court’s power to require a solicitor to deliver a bill of costs (SA 1974, s 68)—see Practice Note: Solicitor and client costs—applications for delivery the features required of a statute bill—see Practice Note: Solicitor and client costs—statute bills the basis applied on a solicitor–client assessment—see Practice Note: Solicitor and client costs—basis of assessment How to obtain an order for assessment Making a Part 8 claim The route to an assessment order...

This Practice Note considers when a solicitor–own client assessment can be sought. The principal mechanism is the statutory scheme in Part III of the Solicitors Act 1974 (SA 1974). Under SA 1974, the ‘party chargeable’ and certain third parties have rights to ask for an assessment. This Note outlines the applicable tests and the various deadlines that may ultimately curb the opportunity to seek one. It also identifies the relevant context. For ease, the Solicitors Act 1974 is abbreviated to SA 1974 throughout. This usage is maintained for consistency within this Note. Where a solicitor issues a claim to recover their statute bill, the defendant may alternatively be able to invoke a ‘common law’ entitlement to an assessment. This Note sets out the main distinctions between that common law entitlement and the statutory rights available under SA 1974. CPR provisions governing the assessment of solicitors’ costs appear in CPR 46 and in CPR PD 46, paragraph 6.1 onwards, as set out in those provisions. For further information, see Practice...

Schedule of costs precedents—Precedent M Order arising from the Solicitor’s application for assessment under the Solicitor’s Act 1974 Part III, dated [ DATE ], Claim No. [ insert claim number ]...

[ Letterhead ] Dear [ insert client’s name ] [ Insert summary of the scope of services covered by the general retainer ] This general retainer letter, together with the enclosed Terms of Business, sets out how we will act for you in relation to [ insert summary of the scope of services covered by the general retainer ]. A fuller outline of the services within this general retainer appears at section 1 below. Taken together, this letter and the Terms of Business constitute the contract between us. This does not constitute a [ Non-contentious OR Contentious ] business agreement for the purposes of the Solicitors Act 1974. If anything in this letter or other materials we supply is unclear, please contact me—for example, if you need information in larger print, an alternative format, or a different language. 1 Scope of services and limitations This general retainer covers [ insert a detailed description of the scope of services covered by the general retainer ] (the...

Front page of bill [ enter client name and address ] Invoice number: [ enter number ] Invoice date: [ enter date ] VAT number: [ enter number ] Client: [ enter client name ] Matter: [ enter matter description ] Reference: [ enter matter reference ] £ VAT amount £ VAT rate % Fees: For our professional fees from [ enter date ] to [ enter date ] covering legal counsel and services [ enter gross total figure or itemise ] [ enter figure ] [ enter VAT rate ] Disbursements (expenses): [ describe disbursement ] ( [ paid OR not yet paid ] ) [ describe disbursement ] ( [ paid ] ) ...