Oakwood Solicitors Ltd v Menzies
[2024] UKSC 34
Ashley Holcroft v Thorneycroft Solicitors Limited
17 June 2024
[2024] EWHC 1473 (KB)
High Court
A client settled a personal injury claim, agreeing to a specific amount after deductions for their solicitor's fees. Later, they tried to challenge the solicitor's fees. The court said the initial agreement, even without specifically mentioning it, meant the client gave up their right to challenge those fees. The client's appeal failed.
Key Facts
- •Thorneycroft Solicitors (Respondent) acted for Ashley Holcroft (Appellant) in a personal injury claim.
- •A settlement offer of £24,200 was made, with deductions for the Respondent's costs and disbursements, resulting in £9,865 for the Appellant.
- •The Appellant authorized the Respondent to accept the settlement on August 4, 2020.
- •The Respondent subsequently delivered a bill for its costs, leading the Appellant to commence section 70 proceedings (Solicitors Act 1974) for assessment.
- •The District Judge struck out the Appellant's claim, finding a binding agreement precluding section 70 assessment.
Legal Principles
A binding agreement between solicitor and client can preclude section 70 assessment of costs under the Solicitors Act 1974.
Jones v Richard Slade & Co [2023] EWHC 1968 (KB)
Section 70(1) of the Solicitors Act 1974 allows a party to seek assessment of a solicitor's bill within one month of delivery.
Solicitors Act 1974, section 70(1)
Section 57 of the Solicitors Act 1974 allows for non-contentious business agreements regarding solicitor remuneration, which can be assessed for fairness and reasonableness.
Solicitors Act 1974, section 57
The court must determine the nature and effect of the agreement between solicitor and client before proceeding with section 70 assessment.
Jones v Richard Slade & Co [2023] EWHC 1968 (KB)
Even without an express statement, a client can forego their right to assessment if the agreement clearly indicates an intention to do so.
Walton v Egan [1982] 1 QB 1232
Outcomes
Appeal dismissed.
The court found a binding agreement existed between the Appellant and Respondent regarding the division of the settlement sum, precluding the use of section 70 proceedings. The agreement, while not explicitly stating the waiver of assessment rights, implicitly did so through its terms and the Appellant's actions.