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23 March 2012 / William Gibson
Issue: 7506 / Categories: Features , Procedure & practice , Costs
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The costs conundrum

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In the first article in a special NLJ costs series, William Gibson reports on “safe” retainers & firefighting

Solicitors providing services under a retainer are subject to the provisions of the Supply of Goods and Services Act 1982 and, pursuant to s 15, are entitled to reasonable remuneration for their services. What is reasonable, however, can depend on viewpoint. He who pays the piper can always object to the tune being played. An inaccurate or incomplete retainer arrangement can seriously damage your wealth.

In Minkin v Cawdery Kaye Fireman & Taylor [2011] EWHC 177 QB, [2011] All ER (D) 82 (Feb) solicitors had persistently exceeded costs estimates, given originally with the retainer, without prior warning and were held to have breached the contract of retainer, rendering it unenforceable. When challenged by the clients their costs were disallowed in their entirety. Cranston J said that the firm: “Should have been clearer in its retainer letter as to the nature of the engagement…It should also

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