A landmark Court of Appeal costs ruling in favour of claimant solicitors cannot be challenged in the Supreme Court, appeal judges have ruled. 

Master of the rolls Sir Geoffrey Vos, sitting alongside Lord Justice Lewison and Lady Justice Simler, refused permission to appeal their decision last month in Menzies v Oakwood Solicitors.

The ruling, which effectively defeated a costs challenge by a former client of the Leeds practice, was widely welcomed by the claimant sector which has faced a barrage of similar claims.

The refusal to allow an appeal to the Supreme Court could be a significant turning point for these types of costs recovery claims, although the former client, who is now represented by Leeds firm JG Solicitors, can still apply directly to the Supreme Court. The very fact that the decision of the Court of Appeal was being challenged is an indication these claims are unlikely to be abandoned anytime soon.

The appeal judges had ruled that a conditional fee agreement signed by Dean Menzies when he instructed Oakwood Solicitors to handle a personal injury claim had authorised the solicitors to recoup their fees from his compensation. It followed that the payment of the bill was completed when the firm deducted the money – meaning that Menzies’ subsequent challenge was too late and could not be reassessed.

Costs Judge Rowley had held the application for assessment was time-barred, but on appeal Mr Justice Bourne said costs could be looked at again because there had been no ‘settlement of account’.

The master of the rolls ruled that consent was not required to be given after the delivery of the bill, if the client had already validly authorised the solicitor to recoup fees by deduction from damages.

Oakwood Solicitors said the decision gave firms ‘the reassurance of knowing if the client has all information from the start, agrees the settlement of damages knowing there will be a deduction from the same to cover costs and is sent a compliant bill at the conclusion of the case before payment takes place, the time limits under the Solicitors Act will start to run’.

Katie Bell, head of costs at Oakwood, said the case was a reminder to send a detailed retainer and accompanying letters to the client at the outset, explaining the deduction to be taken from damages and clients’ right to have it assessed.

She added that firms should also ensure they send detailed letters and authorities to the client at the point of accepting the damages offer, explaining the amount of deduction they will be taking. Firms should then ask clients to send written confirmation accepting the offer.

 

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