Legal Cost Specialists

Posts made in October, 2020

Another one bites the dust

By on Oct 30, 2020 | 0 comments

The wheels of justice turn slowly at the best of times but one would hope the regulatory authorities would act with a degree of alacrity. Many readers will recall the case of GSD Law Ltd v Wardman & Ors [2017] EWCA Civ 2144.  This case concerned a number of personal injury claims where GSD Law acted for the claimants. At the subsequent detailed assessment of the costs of those claims in 2014, the paying parties’ insurer alleged systematic fraud and misconduct against GSD Law, including claiming for hourly rates in excess of the retainer rates, claims for senior lawyers’ rates for work done by junior fee-earners, and claims for work that had simply not been done. At first instance, Regional Costs Judge Neaves found GSD Law’s principal, Kirna Madhas, to be “a wholly unreliable witness” and that her evidence was “not only evasive and inconsistent, but dishonest”. He held all the allegations made against GSD Law proved and that the extent of the conduct and dishonesty of GSD Law was at the most serious end of the scale. This included submitting a forged conditional fee agreement to the court. He concluded: “The conduct of the receiving party’s solicitor is sufficiently egregious as to make the only appropriate sanction the disallowance of all costs on the sample files. The receiving party will also pay the costs of the assessment proceedings including the preliminary issues.” The Court of Appeal rejected GSD Law’s subsequent appeal. One of the most striking features about the case (as if forging a CFA were not bad enough) is that during the detailed assessment proceedings Ms Madhas admitted making false allegations to the Costs Lawyer Standards Board about the conduct of the insurer’s Costs Lawyer, Jon Williams of Williams Associates Costs Lawyers.  This was clearly a blatant attempt to undermine the proper challenges that had been made to her fraudulent claim for costs.  Jon Williams is one of the country’s most highly respected Costs Lawyers and, even at the time, this act alone appeared to be adequate reason for Ms Madhas to be struck off. The original decision was in 2014 and the Court of Appeal decision was in December 2017.  The relevant authorities do not appear...

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Belsner v Cam Legal Services Ltd

By on Oct 19, 2020 | 0 comments

The decision in Belsner v Cam Legal Services Ltd [2020] EWHC 2755 (QB) will have sent a shiver down the spine of many claimant solicitors in the personal injury field, although the decision may well have wider implications. The case concerned a solicitor/own client assessment. The underlying matter concerned a low value RTA being pursued in the RTA portal.  The costs recoverable from the opponent to the RTA claim were limited to fixed costs plus disbursements. The client’s solicitors sought to charge their client the costs recovered from the opponent plus 25% of the damages recovered. Section 74(3) of the Solicitors Act 1974 provides: “The amount which may be allowed on the assessment of any costs or bill of costs in respect of any item relating to proceedings in the county court shall not, except in so far as rules of court may otherwise provide, exceed the amount which could have been allowed in respect of that item as between party and party in those proceedings, having regard to the nature of the proceedings and the amount of the claim and of any counterclaim.” Although the claim itself settled prior to proceedings being issued, it was not disputed that this section applied to the case. CPR 46.9(2) provides, in relation to the detailed assessment of solicitor and client costs: “Section 74(3) of the Solicitors Act 1974 applies unless the solicitor and client have entered into a written agreement which expressly permits payment to the solicitor of an amount of costs greater than that which the client could have recovered from another party to the proceedings.” The issue for the court was whether a solicitor seeking to rely on CPR 46.9(2) has to show that the client gave informed consent to the payment to the solicitor of an amount of costs greater than that which the client could have recovered from another party to the proceedings. The terms of the CFA, which governed the costs payable between the solicitors and the client, contained standard Law Society wording: “Normally, you can claim part or all of our basic charges and our expenses and disbursements from your opponent. You provide us with your irrevocable agreement to pursue such a claim on your...

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