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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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MOVERS & SHAKERS

Taylor Rose—Jacqui Hayat & Andrew Bentham

Taylor Rose—Jacqui Hayat & Andrew Bentham

Taylor Rose strengthens Medical Negligence team with senior leadership appointments

Birmingham Law Society—Sabina Kauser

Birmingham Law Society—Sabina Kauser

Ward Hadaway partner appointed Vice President of Birmingham Law Society

Excello Law—Nick Gore & Irfan Ali

Excello Law—Nick Gore & Irfan Ali

Excello Law immigration boost with two more hires from Irwin Mitchell

NEWS
The Thirlwall Inquiry has exposed a ‘complete failure’ to protect babies at the Countess of Chester Hospital, but its recommendations must now be put into practice
MPs cannot simply resign their Commons seats. Instead, they take a nominal Crown office, usually the Chiltern Hundreds or Manor of Northstead, which disqualifies them from sitting
A divorced woman has secured funding to participate in her former husband’s inquest after the Legal Aid Agency reconsidered repeated refusals
Developers in areas with poorly performing councils can apply directly to the Planning Inspectorate for permission under section 62A of the Town and Country Planning Act 1990
When does a solicitor’s retainer become a contentious business agreement? The Court of Appeal’s decision in Broadfield Law UK LLP v Barnes shows that listing hourly rates alone will not do, leaving firms and clients uncertain about their rights over bills
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