header-logo header-logo

26 January 2012
Issue: 7498 / Categories: Legal News
printer mail-detail

Overpayment victory for LSC

LSC wins legal action on solicitor overpayments

The Legal Services Commission (LSC) has won three test cases against solicitors to recover approximately £250,000 in overpayments.

About 35 cases stayed pending the outcome of these test cases will now be brought forward, which could see the LSC reclaiming about £30m from legal aid solicitors, although no official figures have been released.

In each of the cases—LSC v Loomba, LSC v Ulasi, and LSC v Simon Carter & Ors [2012] EWHC 29 (QB)—the solicitor concerned received payments on account under legal aid certificates but did not submit a final bill and claim for costs. The LSC therefore assessed the amount due under those certificates as nil and sought to reclaim the outstanding balance.

In one of the cases, the LSC also claimed the excess owing where the costs allowed on the costs assessment were less than the amount of the payments on account claimed by the solicitor. In another case, the LSC claimed the amount of payments on account where the solicitor had recovered costs from the opposing party.

The solicitors argued that the LSC did not have the power to carry out nil assessments, and therefore had acted unlawfully, and had breached their human rights.

Mr Justice Cranston, however, rejected these arguments. He also rejected two of the defendants’ argument that a deed of settlement entered into between the LSC, the Law Society and the Ministry of Justice prevented the LSC from bringing proceedings against them.

An LSC spokesperson says: “We are very pleased that the court has found in our favour, as this is an important principle which affects the legal aid fund.

“We must always ensure that taxpayers’ money is managed properly, and recovering overpayments or recouping payments on account in these circumstances helps us do that.”

Adam Taylor, partner at CKFT, who acted for the LSC, says: “We are pleased to have been able to assist the LSC in recovering this debt.”

Issue: 7498 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Clarke Willmott—Alexia Haines & Kelsey Wells

Clarke Willmott—Alexia Haines & Kelsey Wells

Clarke Willmott strengthens Birmingham private client team with double appointment

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

From global fraud cases to fishing off-grid, Mishcon de Reya’s chair of dispute resolution Hugo Plowman discusses mentors, management switching off

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law announces partner promotion and new hires amid a record year for enquiries

NEWS
Restrictions on workplace non-disclosure agreements could make settlements slower, more complex and more expensive when reforms expected in 2027 take effect
Private prosecutors face closer scrutiny under Crown Prosecution Service guidance designed to strengthen accountability and consistency when intervention is requested
Foreign states cannot necessarily claim immunity for cyber operations launched abroad against computers in Britain, following a divided Supreme Court ruling
Defendants who make unsupported complaints about their lawyers risk losing legal aid while confiscation proceedings continue without representation
Lawyers advising Russian clients face different sanctions restrictions across the UK, EU and US, despite their shared objective of increasing pressure on Russia
back-to-top-scroll