Topics

If you have any queries on costs please contact our Practice Advice Service on 0870 606 2522.

News

Leave to appeal denied in Garrett and Myatt - 07 December 2006
The House of Lords has refused permission to appeal in the cases of Garrett and Myatt. The Law Society's application to intervene has also been refused. The House of Lords decision was unanimous and so there is no further right of appeal. The Law Society has yet to be provided with full reasons for the refusal.

CFAs - important judgment in Myatt and Garrett - 18 July 2006
Contentious costs booklet updated - 03 July 2006

• Practical costs information
  Rules and guidelines
  Guidance
  Conditional Fee Agreements (CFAs)
  Financial Services Authority and solicitors
  Disclosure and referrals
• General work and reviews
• Current case interventions
• Completed case interventions
• Articles
• Links
• Civil litigation - general news and information

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Practical costs information

Rules and guidelines

• Solicitors Act 1974 - Part 3 of the Act governs solicitors' remuneration. The Act is not online; please contact the Law Society library for copies.
• Access to Justice Act 1999, especially Part II: Other funding of Legal Services.
• The Civil Procedure Rules governing civil procedure, including alternative disputes resolution, fixed costs and the Road Traffic Accident scheme.
• Solicitors Practice Rules - particularly Rule 15. The Solicitors' Practice Rules are the principal set of rules governing the practice of a solicitor in England and Wales. They were last amended in February 2005.
• Solicitors' Costs Information and Client Care Code 1999 regulates the information solicitors need to provide to clients and operating complaints procedures. For background and guidance on the latest amendment refer to the Solicitors' Practice (Client Care) Amendment Rule 2005.

Guidance

• Law Society: contentious costs - updated July 2006
• Law Society: non-contentious costs
• Your clients - your business, which replaces the Client Care Guide.
• General guidance

Conditional Fee Agreements (CFAs)

CFAs are subject to the rules and guidelines set out above. The statutory provision for CFAs is section 58 of the Courts and Legal Services Act as substituted by section 27 of the Access to Justice Act 1999. If the requirements within section 58 are not met the CFA will be unenforceable.

Since inception there have been a number of changes to the CFA regime, most recently from 1 November 2005. Solicitors are advised to familiarise themselves with the latest developments.

Important judgment in Myatt and Garrett - 18 July 2006
Background and summary of most recent changes
Department for Constitutional Affairs

• The amendment from 1 November 2005 to paragraph 5(d) of the Solicitors' Costs Information and Client Care Code 1999 is specific to CFAs.
• Law Society model CFA

Financial Services Authority and solicitors

FSA regulation extends to insurance mediation activities. The Law Society and the FSA have come to an arrangement regarding solicitors and insurance mediation activities: this results in the Law Society being a designated professional body.

Law Society guidance:

• Financial Services: extension of the regulatory regime, guidance for solicitors on the FSA requirement
  22 September 2004
• Insurance work - FSA Registration requirements
  18 May 2005

Disclosure and referrals

All solicitors need to be aware of the conduct provisions on disclosure.

Please refer to the Law Society guidance: Disclosure of funding, fee sharing and referral arrangements

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General work and reviews

Pending new Law Society Code of Conduct - not yet in force

Civil Justice Council - we are actively involved in their costs work.
Improved Access to Justice - funding options and proportionate costs - Law Society response to the CJC report.
The report has significant and widespread implications for all users of the civil litigation system.
What's new
Costs answerbank

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Current case interventions

The Law Society is interested in cases concerning legal principles of general importance to the profession. Interventions policy. Phone our Practice Advice Service on 0870 606 2522 with any queries.

Deborah Garrett v Halton Borough Council and Myatt & ors v N.C.B.
Case summary
The Society is studying the judgment in detail and, working with the solicitors concerned, considering what steps to take to try and ameliorate the effect of the Court's decision, including whether to seek leave to appeal to the House of Lords.
Law Society Gazette report

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Completed case interventions

Rogers v Merthyr Tydfil CBC
Case summary
Law Society Gazette news

Garbutt v Edwards
Case summary
Law Society Gazette report
Law Society Gazette news

Agassi v Robinson
Case summary
Law Society Gazette news

Campbell v MGN
Case summary
Law Society Gazette news
Editorial by Jeremy Morgan

Hollins v Russell
Case summary
Law Society Gazette news

Ghannouchi v Houni Ltd
Case summary
Law Society press release

Sarwar v Alam
Case summary
Law Society Gazette news (16 November 2001)

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Articles

Law Society press release

‘No win no fee' system improved by the Law Society
01 November 2005

Litigation Focus

Quarterly magazine of the Law Society's former Civil Litigation Section.

• Profit and loss: the bottom line - time recording and time costing were introduced back in the days when it was slowly dawning on solicitors that they were no longer certain to make a profit simply by working all hours that God sent and charging as much as the matter or client would stand.
• When “shall” means “when it suits you” - chronological tour of precedents leads to the recent case of Garbutt v Edwards, which brings new debate to the issue of costs.
• On one condition - responsibility for client care, contractual and guidance matters now fall under a Law Society code.
• In a galaxy, far, far away...with the referral fee system still under review, there are a number of
  issues practitioners should be aware of.
• Budgeting: if you can’t beat it, join it - with the issue of costs capping and budgeting one of the fastest growing areas of the law today, debate over how to best handle it still rages,

The Section is now part of the Dispute Resolution Section. To find out about the Dispute Resolution Section, call 020 7316 5668 or e-mail drs@lawsociety.org.uk.

The Law Society Gazette

Costs law

Litigation Funding

A bi-monthly journal. Read more

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Links

Other regulations and professional conduct
The Law Society Gazette
Department of Constitutional Affairs
The Court Service
Parliament's website (for statutes and statutory instruments)
The Civil Procedure Rules website
The Department of Constitutional Affairs website

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