A step too far

Obtaining payment of costs from a client at the end of a matter can be difficult. Often, in contentious matters, the outcome is not to the client's liking.


Many disputes over costs arise because solicitors have not given adequate information to their clients in accordance with the Solicitors Costs Information and Client Care Code. However, even where this has been dealt with properly, disputes can arise that leave the solicitor considering the best option to pursue in recovering the outstanding costs.


Exercising a lien over the client's papers can often be an effective way of bringing matters to a head, provided the lien is exercised properly. Proceedings may have to be issued in the civil courts, although many solicitors are reluctant to sue clients, for obvious reasons. However, using other methods of persuasion can be inadvisable.


A long-standing client instructed a firm in connection with matrimonial problems. He was not in a position to make any payment on account of costs because of his straitened financial position. However, he was expecting to receive damages from a personal injuries claim and so authorised the solicitors acting for him in that matter to send to his matrimonial solicitors any damages to which he was entitled. Unfortunately, the amount of damages received was significantly smaller than expected and, owing to his deteriorating financial situation, he withdrew that authority.


Understandably, the matrimonial solicitors were disappointed; they had submitted a large bill and expected to be paid. Faced with that situation, most solicitors would have pointed out the consequences of non-payment and explored the possibility of reaching an agreement with the client for payment, for example by instalments, notifying him that the firm might have to sue if the arrangement failed and the bill remained unpaid.


However, the conducting solicitor in this case thought it appropriate to inform his client that he might have committed the serious criminal offence of obtaining services by deception and threatened to make a complaint to the police if the bill was not paid. He later informed the client that he was making arrangements to make such a complaint.


The client complained to the Law Society, which considered that the solicitor's actions raised issues of professional conduct. After investigation, the matter was referred to an adjudicator, who found that the solicitor's conduct was not in accordance with Solicitors Practice Rule 1(d) and reprimanded him, describing the approach taken by the solicitor as clumsy and most client-unfriendly.


Cases before the Law Society's adjudication panel are decided on their individual facts. This case study is for illustration only and should not be treated as a precedent