Background

No fiduciary duty to client when negotiating the retainer - solicitors could deduct their success fee from recoverable costs.

The Issues

The action settled for damages of £1,916.98 at Stage 2 of the RTA Portal and accordingly the defendant paid the fixed costs of £500.00 (plus VAT and disbursements).  Out of the damages, the solicitors deducted their success fee of £385.50.

The Claimant later issued a Part 8 application requesting that her solicitors deliver a final statutory bill, which subsequently showed a figure in excess of damages.  However the solicitors had capped the Claimant’s contribution to 25% of damages, (£385.50) in accordance with statute.

On appeal, Lavender J held that informed consent had not been given to the client and allowed the solicitors to charge a success fee only on the fixed costs of £500 (£75.00).  They were ordered to repay £295.50 to the Claimant.

The Claimant appealed.