Yvia Pulford v Hughes Fowler Carruthers Limited
[2023] EWHC 1429 (SCCO)
Clare Griffin v Kleyman & Co Solicitors Ltd
14 May 2024
[2024] EWHC 1151 (SCCO)
Senior Courts Costs Office
A woman's divorce got very expensive. Her solicitor gave estimates of the costs, but the final bill was much higher. The judge said that while the solicitor should have given better estimates, the woman herself acted in ways that made the costs go way up. So, the judge will look at the bills in detail to figure out how much the woman fairly owes.
Key Facts
- •Assessment of solicitor's bills under section 70 of the Solicitors Act 1974.
- •Claimant instructed three different solicitors during her divorce proceedings.
- •Dispute centers on whether solicitor's fees should be limited based on estimates provided.
- •Significant cost discrepancies between estimates and final bills.
- •Claimant's conduct contributed to escalating costs.
- •Contentious divorce proceedings with allegations of asset concealment.
- •Claimant ultimately purchased the family home but incurred substantial costs.
Legal Principles
Failure to provide adequate costs information may limit recoverable costs, even if the contract of retainer remains enforceable.
Garbutt v Edwards [2005] EWCA Civ 1206
The solicitor's estimate is a useful yardstick for assessing reasonableness of costs, but it does not create a fixed price; substantial differences require explanation.
Leigh v Michelin Tyre plc [2004] 1 WLR 846; Garbutt v Edwards [2005] EWCA Civ 1206
The court considers what it is reasonable for the client to be expected to pay, taking into account the estimate and other relevant factors.
Mastercigars Direct Ltd v Withers LLP [2007] EWHC 2733 (Ch); Mastercigars Direct Ltd v Withers LLP [2009] EWHC 651 (Ch)
Client need not prove they would have acted differently with adequate cost information; the deprivation of opportunity to act differently is sufficient.
Mastercigars Direct Ltd v Withers LLP [2009] EWHC 651 (Ch)
An inadequate initial estimate may limit costs even if updated later, especially if it is too late for the client to act differently.
Reynolds v Stone Rowe Brewer [2008] EWHC 497
Solicitors have a duty under the Code of Conduct to provide clients with the best possible information about costs, both at engagement and as the matter progresses.
Code of Conduct, paragraph 8.7
Outcomes
The solicitor's costs will not be limited by reference to the estimates provided.
The court found that while the July 2020 estimate was the most pertinent, the Claimant's unreasonable conduct and unforeseen circumstances caused the significant cost overruns. The court found the Claimant's evidence unreliable and inconsistent, and preferred the evidence of the Defendant's solicitor.
A full detailed assessment of the solicitor's bills is necessary to determine the reasonable amount the Claimant should pay.
The Claimant's conduct made it impossible to fairly determine a limited figure based on the estimates. A detailed assessment will allow for a proper evaluation of the work performed and the reasonableness of the costs.