TERMS OF BUSINESS
The terms upon which the Firm will accept your instructions to act on your behalf are set out below. They may be varied from time to time.
1. Legal Fees
1.1. It is important that all our Clients are aware of our arrangement for rendering invoices for legal services, and also of the various ways in which payment of such fees may be made. In particular (and this is especially important with regard to contentious matters), we will always consider whether a Client is eligible for any of the various forms of Public Funding (Legal Aid) or other assistance.
1.2. It is a Statutory requirement that Solicitors' charges should be fair and reasonable. If you feel that ours are not, you have the right to have our bill reviewed by a Court (or alternatively, in the case of a non-contentious matter, by the Law Society).
1.3. In fixing our charges, we are required to take into account a number of factors. These include the complexity of the issues, the speed at which action must be taken, the value of any property being dealt with, the skills involved and the importance of the matter to the client. One of the factors (but not always the most important one) is the time expended by Solicitors and other relevant members of the Firm's staff, but a fair charge may be more or less than one based solely on hourly rates.
1.4.1 The Law Society requires us to make known to our Clients the hourly rates which we use as our yardstick for calculating our charges, where the time involved is an important factor. With effect from 1st January 2005, these (which have been calculated using a formula recommended by the Law Society), are:-
| Grade A |
Partners & Senior Solicitors |
£184 per hour |
| Grade B |
Solicitors & Legal Executives
(more than 4 years post-qualification experience) |
£163 per hour |
| Grade C |
Solicitors & Legal Executives
(under 4 years post-qualification experience) |
£145 per hour |
| Grade D |
Legal Assistants |
£100 per hour |
1.4.2 These rates will be applied to all time spent on your matters by the relevant member of the Firm (including meetings with you and other necessary parties; any time spent travelling; considering, preparing and working on papers; correspondence; and making and receiving telephone calls). They are inclusive of normal secretarial time, other overheads, and a margin of profit, but additional charges are made for substantial amounts of copying, overseas and other unusually costly telephone charges, and other out of pocket expenses.
1.4.3 The rates are normally reviewed annually. We try, when reviewing rates, to limit increases. This is not always possible, but in long continuing matters, we will advise you of the new rates we intend to apply at each review of rates.
1.4.4 VAT is payable on all fees at the rate which applies when the work is done. The present rate of VAT is 17.5%.
1.5.1 Clients who are eligible for Publicly Funded Legal Advice will not have to pay for legal services provided to them, except insofar as they are obliged to pay contributions towards any Public Funding Certificates issued to them. But Clients must appreciate that their Publicly Funded costs may be subject to the Legal Services Commission’s contractual or Statutory Charge.
1.5.2 However, in various circumstances, the Legal Services Commission Statutory Charge will apply to property or money recovered or preserved, and details of the appropriate Public Funding hourly rate will be provided by the Fee Earner having conduct of the matter. Please refer to Section 15 on pages 11 to 14.
1.6 In relation to the payment for the Firm’s Mediation Services, please refer to the Section on page 10 which deals with that aspect of the Firm’s work.
2. Estimates
2.1. The Law Society and the Legal Services Commission require us to provide a written estimate of our charges and expenses at the outset of, and at appropriate stages throughout, any matter or, where it is not reasonably practicable to do this, to explain the reason for it and invite a Client to set a total fee which will not be exceeded without their consent (even though it may not be possible for us to complete the required work without exceeding that stated limit). The Solicitor or Executive handling any particular matter will deal with this issue in the initial letter confirming a Client's instructions. In any matter where, at the outset, we are able only to give our best assessment of the likely fees, we will always give a Client sufficient warning when that figure is in danger of being exceeded. The Executive with conduct of your matter will review the estimate of costs at least every 6 months or sooner if your matter requires it. However, in an urgent matter where the client requires us to take action at short notice it is not always possible to provide an estimate as to the cost of such instructions.
2.2. As far as Conveyancing charges are concerned, the Firm will normally expect to adhere to any written estimate which is given. However, such estimates are always given on the assumption that the transaction concerned is reasonably straightforward, and the Firm reserves the right to revise any such estimate in the event of the transaction proving to be more time consuming or complex than originally anticipated. The value of property is a factor in calculating conveyancing fees. The Firm normally adopts the Law Society's recommendation which, in the residential conveyancing context, is ½% of the respective sale or purchase price up to £400,000. Other factors which may be taken into account in settling conveyancing fees will be the time expended, the complexity of the transaction, and any particular urgency with which the matter has to be handled.
2.3. A separate brochure is available in relation to Probate work and related fees. Please e-mail us for further information.
2.4. If Clients request services that are outside the scope of the original instructions, the eventual bill will exceed any estimate based on those original instructions.
3. Overdue Accounts
All accounts rendered to a Client for Legal Services are due for payment on the day that the relevant invoice is rendered to the Client. Interest will be charged on any accounts which remain unpaid 30 days after being delivered. Interest will be at the rate allowed by the Courts on Judgment Debts (currently 8%), or at such other rate as is, for the time being, reasonable in the light of the general level of interest rates. After completing any work, we are entitled to keep all your papers and documents so long as there is any money owing to us for our charges and expenses.
4. Company Clients
On accepting instructions to act on behalf of a Company, we will regard as our Clients both the Company and the individual(s) from whom instructions are received. This means that in addition to the Company, the instructing individual(s) will be personally liable to us for the payment of the legal fees and expenses incurred as a result of those instructions.
5. Interim Accounts
5.1. It is the Firm's normal practice to render regular interim invoices in respect of matters which are not likely to be completed within a period of three months.
5.2. All Clients (whether or not Publicly Funded) will, in any event, be informed periodically (at least every six months) of the approximate amount of costs incurred to date. Unless otherwise stated, any such interim invoice will constitute no more than a request for a payment generally on account of services rendered; it will not necessarily represent the actual cost of the professional work performed during any particular period.
6. Payments on Account
The Firm will require to be put in funds to cover disbursements to be incurred on behalf of a Client. In addition, the Firm reserves the right in all cases to require payment in advance in respect of professional fees
7. Limitation of Liability
7.1. Where our dealings on behalf of a Client also involve us in dealing with third parties for whom we are not acting, we regret that we cannot accept any liability to such third parties.
7.2. In some cases, the size or value of a particular matter is such that this Firm's professional liabilities are potentially too large for us to risk accepting instructions to act concerning the matter. Where this is the case, we will agree with the Client such limitation of liability as is reasonable in the circumstances.
8. Commissions
Unless otherwise agreed at the outset, where a commission or fee of any size or description (including those of a repetitive nature) becomes payable to this Firm as a result of our introduction of a Client to any financial institution or organisation, such receipts shall be taken by us as our professional charges for making such introduction. However, where such receipt is inadequate for the task involved, we reserve the right to make a balancing charge.
9. Free Diagnostic Interview
At our discretion, in appropriate circumstances (but only if agreed with the Client in advance) we will offer a short free Diagnostic Interview. However, the object of such an interview (which will normally not exceed 15 minutes) will be limited to (a) assessing the Client's problem and whether the Firm is prepared to assist and, if so, (b) the manner in which our services will be paid for.
10. Fixed Fee Interview
In other cases, we are prepared to offer certain Clients a 30 minute substantive interview for the cost of £30 (inclusive of VAT). However, the Fee Earner with whom an appointment is made will have the sole discretion as to whether to offer an interview on this basis. If so, he/she will require payment at the start of the meeting. In any event, if the 30 minute interview is exceeded, the Client will be liable to pay the Firm's fees for the additional time at the Firm's normal rates.
11. Contingency and Conditional Fees
11.1. In appropriate cases, the Firm is prepared to consider undertaking work on behalf of a Client on either a contingency or conditional fee basis.
11.2. The Firm will consider a contingency-style arrangement in respect of a Matter that is not contentious; otherwise, such fee arrangements are unlawful as a matter of public policy under the common law principles of maintenance and champerty.
There is also a legislative bar on the use of contingency fees in contentious business agreements in the Solicitors Act 1974, Section 59(2). If the Firm is to act on behalf of a Client on a contingency basis, our retainer will be clearly defined so that the contingency fee arrangement runs only until such time as the matter remains non-contentious. In this respect, we will not accept instructions to prosecute, or defend, any action.
11.3. As far as conditional fees are concerned, the Firm is prepared in appropriate cases to act on behalf of a Client on such a basis. However, the decision to enter into any particular conditional fee agreement is at the Firm's sole discretion.
12. Mediation
12.1 The Firm has its own Mediation Service, in relation to which we will be pleased to provide details on request. In addition, Michael Stocken will be happy to discuss the option of Mediation in respect of the breakdown of either marriage or unmarried relationships. We hold a Public Funding Franchise in respect of "publicly funded Mediation", and certain Clients of the Service may be eligible for financial assistance out of public funds in respect of the Mediation process.
12.2 Mediation may involve either "all issues", "children", or "property and finance" matters.
12.3 In the event of a referral to the Firm’s Mediation Service, we will assess whether a party is eligible for publicly funded Mediation. If so, an appropriate “means form” will have to be completed, and a copy sent to the party’s own Solicitors, so that they can obtain publicly funded “Help with Mediation” for their client. If one of the Clients is eligible for publicly funded Mediation, the other (if not eligible) will receive a free assessment meeting but will be responsible for meeting one half of the costs of any subsequent mediation service provided.
12.4 For a private Mediation client, the Firm will charge at an hourly rate of £190 (exclusive of VAT) for the time spent in conducting face-to-face Mediation, the preparation of interim and final Summaries, and a one half share of all necessary administration of the Mediation process. All fees for Mediation services are payable at the end of each session.
12.5 The Legal Services Commission “Statutory Charge” does not apply to publicly funded Mediation.
12.6 In entering into Mediation, a Client expressly consents to the disclosure of the contents of the Firm’s file to the Legal Services Commission and its external Supervisor in connection with its assessed quality auditing procedures.
13. Termination
You may terminate your instructions to us in writing at any time but we will be entitled to keep all your papers and documents while there is money owing to us for our charges and expenses. In some circumstances, you may consider that we ought to stop acting for you (for example, if you cannot give clear or proper instructions on how we are to proceed, or if it is clear that you have lost confidence in how we are carrying out your work).
We may decide to stop acting for you only with good reason (for example, if you do not pay an interim bill or comply with our request for payment on account). We must give you reasonable notice that we will stop acting for you.
If you or we decide that we will no longer act for you, you will be liable to pay our charges on an hourly basis, and expenses, in the manner described above.
PUBLIC FUNDING
14. INTRODUCTION
14.1. The Firm holds Community Legal Service Contract from the Legal Services Commission in relation to certain categories of work, namely, crime, family, and mediation. The Solicitor or Executive whom you see will be able to advise whether you will be eligible for Public Funding in connection with your particular matter. It is important for Clients to appreciate that Public Funding is not effective retrospectively.
14.2. If you specifically require us to undertake work in advance of a Public Funding Certificate being granted, (unless the work is covered by the Firm's General Civil Contract) you will be liable to pay the cost of the advice given (or the action undertaken on your behalf), at our normal charge-out rates. If you are not prepared to accept personal liability for the payment of such fees (which may include our requiring a payment generally on account of them), this may result in the matter not being processed until a Public Funding Certificate has been granted. A certain amount of work will be undertaken in actually processing a Public Funding Application; if such work is not covered by the Firm's General Civil Contract, the Client will in any event be liable for the cost of it.
15. SCOPE OF PUBLIC FUNDING
15.1. General Civil Contract
15.1.1. We have a General Civil Contract with the Legal Services Commission for the provision of “Legal Help” to Clients. The Contract enables us to complete a form known as "Legal Help and Help at Court - Controlled Work 1". This allows us to provide the appropriate legal services (to a Client who qualifies for such publicly funded assistance) up to 2 hours in a normal matter or 3 hours in a family matter – this will only be extended at our discretion (as we are required to assess whether you as a privately funded client would incur further expense) but inclusive of any disbursements. At the outset of the case, we will advise you of the likely cost of such legal advice, and this will be reviewed at six-monthly intervals during it.
15.1.2. Under the terms of the General Civil Contract, there is a maximum number of cases which we are permitted to undertake on behalf of Clients. However, we are not able to provide initial advice in relation to immigration, clinical negligence or mental health matters.
15.1.3. At their initial meeting with the Solicitor or Executive who will be handling their matter, Clients seeking Public Funding will be required to produce evidence that they are currently in receipt of State Benefits and/or other detailed financial information (including payslips for themselves and any partner, inclusive of all benefits). This is so that we can assess whether the Client is eligible to benefit under the Contract.
15.1.4 Eligibility for General Civil Help does not guarantee eligibility for public funding, particularly in a matrimonial dispute where due to a client’s capital resources, they may be ineligible.
15.2. Criminal Defence Service
15.2.1 The Firm has a contract with the Criminal Defence Service through the Legal Services Commission.
15.2.2. We are able to provide Clients with advice in relation to any criminal matter, which they may be facing.
15.2.3. Michael Stocken is an accredited member of the Crime Panel. Eve Shelley and Emmanuela Uche are Probationary Police Station Representatives. As such, they are able to provide Clients (free of charge) with advice at Police Stations. In cases of emergency, Michael Stocken, Eve Shelley or Emmanuela Uche can be contacted through the Firm's 24 hour answerphone service, or their emergency number of 07767 457547.
15.2.4. Clients who require initial advice concerning a criminal matter may be eligible for free "investigative advice". If so, they will be eligible to freestanding "Advice and Assistance", but evidence of benefits must be produced. This is in addition to Police Station Advice, Application for Warrants of further detention, Armed Forces Custody Hearings and Duty Solicitor Advice. If they are not eligible, Clients will be required to pay for the initial advice at the time it is given.
15.2.5. In cases of "legal representation" which fall within the "interests of justice" criteria, full legal representation before a Magistrates Court is obtainable without a means test enquiry. Cases that fall outside these criteria, e.g. motoring defence matters, will have to be funded by Clients at our normal charge out rate. Clients are encouraged to check with their legal expense insurer as to whether they have coverage for such expenditure e.g. as part of their household insurance cover. In proceedings before the Crown Court, legal representation is free but the Court will in the event of a Client being committed, or pleading guilty, consider what contribution the Client should make towards those proceedings. There is a full means test enquiry.
15.2.6. Clients must make enquiries of their own legal expenses insurers as to whether their policy covers the cost of legal services (the cover usually being provided as part of household or motoring insurance). However, the Firm accepts no responsibility for submitting claims for eligibility on behalf of a Client.
15.3. Personal Injury
15.3.1. Under the Firm's General Civil Contract, the Firm has a licence to provide initial advice to Clients in connection with personal injury claims. Public funding has been largely discontinued in relation to many personal injury cases. Consequently, Clients should discuss with the Solicitor or Executive conducting their matter whether it would be more appropriate to consider a Conditional Fee Agreement ("CFA"), as an alternative to Public Funding.
15.3.2. In relation to a Clinical Negligence matter (a "Medical Claim"), the Firm does not have a Legal Services Commission Franchise; however, in relation to such matters, we will be happy to refer Clients to a firm, which does have such a Franchise. On the other hand, Clients should be aware that we do have expertise in Clinical Negligence claims, and we would be prepared to consider dealing with them either on a Private Fee basis, under a Legal Expenses Insurance Scheme, or through a CFA.
15.4. Public Funding "Statutory Charge"
15.4.1. Any payments made by a Client under the scope of a Public Funding Certificate are a contribution towards his or her legal costs.
15.4.2. In the case of full Public Funding being granted by the Legal Services Commission, such contributions stand to the Client's credit with the Legal Services Commission.
15.4.3. If, as a result of any proceedings in which they are Publicly Funded, a Client recovers or preserves money or property, the "Statutory Charge" (i.e. the costs which the Legal Services Commission is entitled to recover from you) "attaches to that money or property, to the extent of the legal costs involved". For example, when a matrimonial settlement is achieved on a Client's behalf, the Firm has an obligation to advise the Legal Services Commission of the terms of the settlement achieved. The Firm must also assess its legal fees in relation to the matter (at appropriately Publicly funded rates), and then (out of the money obtained under the settlement) forward to the Legal Services Commission a sum equal to our assessment of those fees.
15.4.4. This sum will be held to the Client's credit until an itemised bill of costs "has been assessed by the Court". After receiving the Court's Assessment Certificate as to the fees payable, the Legal Services Commission will pay to the Firm an amount equal to those fees, and any balance outstanding will be returned to the Client (together with any accrued interest).
15.4.5. In the event of a matrimonial home being recovered or preserved on behalf of a Client, it is possible for an application to be made to the Legal Services Commission to postpone the enforcement of the Legal Services Commission's Statutory Charge. The Legal Services Commission is only likely to postpone the effects of the charge if the client can show that they have exhausted all other possible means of discharging the charge, such as obtaining a loan. Evidence is likely to be requested of such attempts that have been made. If such an application is successful, the Commission will take a formal charge (i.e. a mortgage) over the matrimonial home. However, interest (currently at 8%), will accrue to the Commission in respect of the sum due to it. In certain circumstances, it is also possible for the Commission to take charges over other property. The Commission will also seek to recover contributions or agree contributions on a continuing monthly basis until the charge has been fully repaid.
15.5 Public Funding - Matrimonial
In the event of a client receiving Public Funding in a matrimonial dispute, this will be initially limited to Help at Court. There is no guarantee that this will be converted by the Legal Services Commission to a Legal Representation Certificate for representation at a “Final Hearing”, in which event, the Fee Earner with conduct of a Client’s case will discuss with the Client “private funding” if a Final Hearing cannot be avoided.
15.6. Changes in Circumstances and Qualification
All Publicly Funded Clients should remember that:
15.5.1. they have a duty to inform the Legal Services Commission of any material changes in their financial circumstances (e.g. remarriage entering into a civil partnership, increase in their earnings or those of their spouse or cohabitee, or a "windfall receipt");
15.5.2. if they lose their case, they may still be ordered by the Court to contribute to their opponent's costs, even though their own costs are covered by Public Funding;
15.5.3. even if they win, their opponent may not be ordered to pay the full amount of their costs; moreover, such opponent may not be capable of paying even what the Court has ordered him to pay.
16. CONFIDENTIALITY
16.1 All instructions given to the Firm are treated in confidence, and we treat any breaches of a Client's confidentiality extremely seriously. However, it is important that Clients are aware that in certain circumstances, their confidentiality may be breached due to matters that are beyond the control of the Firm, or because of the nature of the instructions given to the Firm by the Client.
6.2 In particular, it is possible for the Police to obtain an Order under Section 9 Schedule 1 of the Police and Criminal Evidence Act 1984 to seek access to records that are held by the Firm on behalf of a Client. These may include not only the Firm's Time Sheets Fee Records but also Attendance Notes. If any such approach were ever made by the Police or other Authorities concerning a Client's records, the Client would be advised in advance before they were released. Clients must also be aware that, in certain circumstances, the Firm may be required to disclose confidential information concerning their affairs under the Proceeds of Crime Act 2002. By instructing the Firm, Clients expressly consent to the Firm complying with its obligations under the Act, including the duty (where necessary) to report the Client’s activities to the NCIS (National Criminal Intelligence Service)
16.3 For the purposes of quality assurance auditing and supervision, Clients expressly consent to the review (where required) by an external auditor (or, in publicly funded cases) by the Legal Services Commission of any file which the Firm holds on their behalf.
16.4 In addition, and particularly in relation to a family dispute and/or an instruction received by the Firm's Mediation Service, issues concerning Child Abuse may, in certain circumstances, be referred by a Fee Earner (after consultation with the Senior Partner of the Firm) to the appropriate Child Protection Team. In all such instances, the Client would be requested to attend a Meeting between the Fee Earner who has conduct of their matter and the Senior Partner of this Firm, to discuss such a referral, in the hope that the Client would if necessary approach the appropriate Child Protection Team themselves.
16.5 If the Firm experiences difficulty in recovering unpaid fees due from any Client, it reserves the right to send correspondence regarding such indebtedness to the Client at any address which the Firm holds for that Client (and irrespective of whether we might have been asked not to use that address for correspondence).
