The so-called ‘costs case of the decade’ will be heard in the Court of Appeal this week. Belsner v CAM Legal Services Ltd will have ramifications for solicitors who require clients to make up any shortfall between costs incurred and those recovered.

It will be the third attempt this year to hear the case in the CoA: the first was abandoned in February when master of the rolls Sir Geoffrey Vos deemed the issues to be of wider significance than first thought; the second was postponed in July.

Belsner asks whether the client in a low-value RTA claim gave informed consent to Norfolk firm CAM Legal Services deduction of unrecovered costs from her damages. She is represented by costs challenge specialist checkmylegalfees.com.

The firm charged Belsner £385.50 including VAT on top of the £500 fixed costs recovered from the defendant, who paid £1,900 damages. A claim to contest the fees failed in the county court but the decision was reversed on first appeal.

The CoA’s ruling is likely to include guidance on when legal business can be counted as contentious and non-contentious and what costs can be incurred for each.

The significance of the case is reflected in the court’s constitution: the master of the rolls, the chancellor of the high court (Lord Justice Flaux) and Lord Justice Nugee.

 

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