Solicitor-Client Costs Disputes
If you believe your solicitor has overcharged you, you have a legal right to challenge their bill. The Solicitors Act 1974 provides a mechanism for having the bill independently assessed by the court. A costs lawyer can help you understand whether the bill is fair and guide you through the process.
Your Right to Challenge
Every client has the right to challenge a solicitor's bill. This right exists under Part III of the Solicitors Act 1974 and is entirely separate from the inter-party costs process that takes place between opposing sides in litigation. Solicitor-client assessment looks at whether the charges made by your own solicitor are fair and reasonable for the work carried out.
Solicitors are required to provide clear and accurate information about their charges. If a bill arrives that is significantly higher than expected, or if you have concerns about the work that was actually carried out, you are not obliged simply to pay it. The assessment process exists to protect clients from excessive or unreasonable charges.
Contentious vs Non-Contentious Business
The rules governing solicitor-client costs depend on whether the work is classified as contentious or non-contentious. Contentious business relates to work done in connection with court proceedings that have been commenced. Non-contentious business covers everything else, including conveyancing, probate, contract drafting, and advisory work where no proceedings have been issued.
For contentious business, assessment is carried out under sections 70 to 72 of the Solicitors Act 1974, and the test is whether the costs were reasonably incurred and reasonable in amount. For non-contentious business, a different regime applies under the Solicitors' (Non-Contentious Business) Remuneration Order 2009, which looks at factors including the complexity of the matter, the skill and expertise required, the time spent, and the value of the transaction.
Time Limits Under Section 70
The timing of your application to challenge is critical. The Solicitors Act 1974 sets out three distinct periods:
- Within one month of delivery of the bill: you have an absolute right to assessment. The court must order it.
- Between one and twelve months: the court has discretion to order assessment. It will consider whether there are special circumstances, whether the bill has already been paid, and the overall justice of the case.
- After twelve months: the court will only order assessment if there are special circumstances. This is a high threshold and is rarely met in practice.
If you have already paid the bill, the court's discretion to order assessment is more limited. Under section 70(3), the court will not ordinarily order assessment of a paid bill after twelve months, and will require special circumstances even within that period. The key message is to act quickly if you have concerns about your solicitor's charges.
The Assessment Process
The process begins with an application to the Senior Courts Costs Office (for High Court matters) or the appropriate county court. The application should set out the basis on which the bill is challenged and should be supported by evidence explaining why assessment is sought.
Once assessment is ordered, the solicitor must provide a detailed breakdown of the bill if one has not already been delivered. The client (or their costs lawyer) then prepares a schedule of objections identifying the specific items that are challenged and the reasons for the challenge. The assessment hearing takes place before a costs judge or district judge, who examines each disputed item and determines a fair figure.
The One-Fifth Rule
Section 70(9) of the Solicitors Act 1974 contains an important costs protection for clients. If the bill is reduced by one-fifth or more on assessment (that is, by 20% or more of the original figure), the solicitor must pay the costs of the assessment proceedings. This means the client does not bear the costs of having the bill examined.
Conversely, if the reduction is less than one-fifth, the client will usually be ordered to pay the costs of the assessment, which can be significant. This makes it important to obtain a realistic assessment of the likely reduction before committing to formal proceedings. A costs lawyer can review the bill and provide a preliminary view on whether the one-fifth threshold is likely to be met.
The Role of a Costs Lawyer
Challenging a solicitor's bill without expert assistance is possible but can be daunting. The legal framework is technical, the procedural requirements are strict, and the assessment hearing itself requires knowledge of what judges consider reasonable in terms of hourly rates, time spent, and the necessity of particular items of work.
A costs lawyer will review the bill from the perspective of someone who deals with legal costs every day. They will identify items where the time claimed appears excessive, where the hourly rate is above the guideline figures for the relevant grade of fee earner and location, where work appears to have been duplicated, or where disbursements seem unreasonable. They will prepare the schedule of objections, handle the procedural steps, and either attend the assessment hearing or prepare the client to do so.
Importantly, a costs lawyer can also advise at an early stage on whether the bill is likely to be reduced by enough to make the process worthwhile. Not every bill that seems high will yield a significant reduction on assessment, and it is better to know this before incurring the costs of formal proceedings.
Frequently Asked Questions
How do I challenge my solicitor's bill?
You can challenge your solicitor's bill by applying to the court for an assessment under Part III of the Solicitors Act 1974. This is sometimes called a "taxation" of the bill. You can apply within one month of receiving the bill as of right. Between one month and twelve months, the court has discretion to order assessment. After twelve months, the court will only order assessment in exceptional circumstances. Before making a formal application, it is often worth raising concerns with the solicitor directly or seeking advice from a costs lawyer on whether the bill is reasonable.
What is the time limit for challenging a bill?
The key time limits are set out in section 70 of the Solicitors Act 1974. Within one month of delivery of the bill, you have an automatic right to assessment. Between one and twelve months, the court has discretion to order assessment but will consider factors such as whether you have paid the bill and whether there are special circumstances. After twelve months, or if you have already paid the bill, assessment is only ordered in exceptional circumstances. If the bill has been paid, the court must also consider whether it is just and reasonable to order assessment.
What is the one-fifth rule?
Under section 70(9) of the Solicitors Act 1974, if the bill is reduced by one-fifth or more on assessment, the solicitor must pay the costs of the assessment proceedings. For example, if a bill is rendered at 10,000 pounds and is assessed at 8,000 pounds or less (a reduction of 20% or more), the solicitor bears the costs of the assessment process. This is an important consideration because it affects the risk of challenging the bill. If the reduction is less than one-fifth, the client will usually have to pay the costs of the assessment.
Do I need a costs lawyer to challenge a bill?
While it is possible to challenge a solicitor's bill without professional assistance, the process involves complex procedural rules and specialist knowledge of what constitutes reasonable costs. A costs lawyer can review the bill, identify items that appear excessive or unreasonable, prepare a schedule of objections, and represent you at the assessment hearing. Given the one-fifth rule, having professional guidance on the likely level of reduction is valuable in deciding whether to pursue an assessment at all.
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