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13 December 2007
Issue: 7301 / Categories: Case law , Law digest
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Civil Litigation

Mastercigars Direct Ltd v Withers LLP [2007] EWHC 2733 (Ch), [2007] All ER (D) 385 (Nov)

Solicitors sought to recover costs from their client substantially in excess of the amount shown in the original estimate (the trial having lasted considerably longer than expected). 

HELD The contractual position between solicitor and client is governed by the Supply of Goods and Services Act 1982, s 15 entitling the solicitor to reasonable remuneration for services provided. A solicitor is not bound by the terms of an estimate. However, where a solicitor’s fees are to be subjected to a detailed assessment, any estimate of costs given to the client is a factor that may be taken into consideration as a yardstick for determining what is reasonable.

Even so, where there is a satisfactory explanation for the difference between the estimate and the amount billed, the estimate might cease to be useful as a yardstick by which to measure reasonableness.

Any reliance placed upon the estimate by the client is also a factor that may be taken into consideration when determining what is reasonable for the client to pay. Because an estimate is not a fixed or maximum price, even where a client relies on the estimate, it will often be the case that the client appreciates that the final bill may be somewhat above the estimate. If the final bill is a little above the estimate then a court might routinely hold that the excess does not prevent it being reasonable for the client to be expected to pay the full bill.

Conversely, if the final bill is significantly above the estimate, a court might routinely feel that the bill had increased by too much so that it was no longer reasonable to expect the client to pay all of it. The court may then be required to exercise its judgment as to what figure could properly be added to the estimate so as not to exceed the sum which it would be reasonable to expect the client to pay.

Issue: 7301 / Categories: Case law , Law digest
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MOVERS & SHAKERS

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

Muckle LLP—Roland Fairlamb

Muckle LLP—Roland Fairlamb

Specialist associate solicitor rejoins Muckle’s leading employment team

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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