Signature Litigation LLP v Bidzina Ivanishvili
[2024] EWCA Civ 901
Bidzina Ivanishvili v Signature Litigation LLP
23 August 2023
[2023] EWHC 2189 (SCCO)
Senior Courts Costs Office
A wealthy client paid his lawyer many bills, but the lawyer's contract stated they weren't final bills until the end of a very long lawsuit. The judge agreed, so the client still has time to challenge the costs when the case is over, even though he's already paid.
Key Facts
- •Claimant sought a declaration that Defendant's invoices were not statutory bills under the Solicitors Act 1974, or alternatively, assessment under section 70.
- •Defendant rendered 79 invoices totaling £12,781,354.66, all paid.
- •Retainer involved complex, multi-jurisdictional litigation against Credit Suisse, with a Conditional Fee Agreement (CFA).
- •Invoices represented only a portion of potential fees, contingent on the litigation's outcome.
- •Dispute centered on whether the invoices were 'complete and final' interim statutory bills, impacting the time limit for assessment under section 70.
Legal Principles
Section 70 of the Solicitors Act 1974 sets out the statutory regime for assessment of solicitor's bills.
Solicitors Act 1974, sections 70(1)-(4)
A solicitor's bill must be a 'statutory bill' to be assessed under section 70, meeting requirements of section 69 and case law criteria.
Solicitors Act 1974, section 69; Case law (various cases cited)
The default position is an 'entire contract', with a final bill due at the retainer's end. Exceptions exist for 'natural breaks' or express agreement for interim bills.
Case law (In re Romer & Haslam, Chamberlain v Boodle and King, etc.)
Interim statutory bills must be complete and final for the work covered, with no subsequent adjustment.
Case law (Bari v Rosen, Abedi v Penningtons)
Agreement for interim statutory bills can be inferred from conduct, requiring clear intention and client acquiescence.
Case law (Abedi v Penningtons, Davidsons v Jones-Fenleigh)
Section 69(2E) presumes a bill meeting signature and delivery requirements is a statutory bill unless proven otherwise. The burden of proof lies with the solicitor.
Solicitors Act 1974, section 69(2E); Case law (In re Romer & Haslam)
A series of non-statutory bills can be incorporated into a final statutory bill (Chamberlain principle).
Case law (Chamberlain v Boodle and King)
Outcomes
The invoices were not statutory bills.
The invoices, rendered under a CFA, lacked the 'completeness and finality' required for interim statutory bills as they only represented a portion of the total potential fees. Neither the initial retainer nor subsequent variations clearly authorized interim statutory billing, and the conduct of the parties didn't imply such an agreement.
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