Lack of Client Consent (CPR 46.9(3) (c) ii ) does not Prevent Deduction of Solicitor Costs from Damages

The Issues

SGI Legal LLP, the defendant solicitors in the original case had acted for the claimant in her claim for damages arising out of a road traffic accident which occurred on 27^th May 2016.

The claim was successful and damages were agreed at £1250.00 with Aviva, the third party insurers paying costs and disbursements in a total of £1116.00 including VAT.

Out of the claimant’s damages a sum of £312.50 was deducted in respect of the success fee and the ATE premium of £143.00.  No bill of costs was provided at that time.

Thereafter the claimant instructed lawyers to dispute the charges, and proceedings for a solicitor-own client detailed assessment under section 70 of the Solicitors Act 1974 were pursued.

The District Judge at first instance, limited the solicitor’s profit costs to the amount of fixed costs recovered from the insurer as there had been no informed consent given by the claimant to the charging of fees in excess of those recoverable from the insurer.