When dealing with legal matters, the costs of solicitors can often become a source of concern or dispute. There are situations where clients may feel that the fees charged are excessive, unreasonable, or not clearly communicated. The Solicitors Act 1974 gives clients the right to apply to the court for a detailed assessment hearing of their solicitor’s bill if they believe the charges are excessive or unjustified.

Kenton v Slee Blackwell PLC is a significant case that sheds light on the issue of solicitors’ costs and the circumstances under which they may be challenged. It highlights key principles related to transparency in billing, the reasonableness of costs, and the duty of solicitors to clearly explain their fees to clients.

Kenton v Slee Blackwell PLC [2023] EWHC

Kenton v Slee Blackwell PLC [2023] EWHC is a notable decision by the High Court of England and Wales. The case involved a dispute over legal costs charged by the law firm Slee Blackwell PLC for services provided to Kenton, who claimed that the firm’s charges were unreasonable and lacked transparency.

Kenton engaged Slee Blackwell PLC to represent her in legal matters, but later questioned the fees charged for the firm’s services after she received a bill. The main issues centred around whether the solicitor’s bill was fair and reasonable, and if they were properly explained to the client.

Kenton argued that the law firm failed to provide an adequate breakdown of the costs and that she had not been sufficiently informed about the potential expenses at the outset of the legal representation.

The High Court ruled in favour of Kenton, holding that Slee Blackwell PLC had failed to meet its obligations under the SRA guidelines regarding transparency and fairness in billing. The judgment emphasised that solicitors must ensure that their clients are fully aware of the cost implications from the beginning of the relationship, providing clear estimates and updates on potential expenses throughout the legal process. The court also examined whether the fees were reasonable given the nature of the case and concluded that they were not adequately justified.

The ruling in Kenton v Slee Blackwell PLC serves as a critical reminder for law firms about the importance of cost transparency and the need for proper communication with clients.

Commercial litigation funding

Commercial litigation funding can be a valuable tool when disputing solicitor costs, especially in cases where the client feels the fees are excessive but lacks the financial resources to challenge them through legal proceedings. Some of the commercial litigation funding methods available include:

• After-the-event (ATE) legal insurance– ATE insurance is generally used to protect from adverse costs risks & Security for Costs requirements. After-the-event (ATE) legal expenses insurance is perhaps best thought as a similar to a ‘swap’. For either no upfront fee or a small upfront fee, the insurer takes on all of the risk of the potential adverse costs award. The claimant has swapped their obligation to pay the defendants in the event of a loss, with the obligation to pay the insurer in the event of a win. This ‘swap’ is generally an attractive swap as the client is likely to be in a better financial position following a win than following a loss. Also, the payment to the insurer will only be a percentage of the adverse costs rather than the whole amount.
• Third party litigation funding– In some cases, third party litigation funders may be willing to provide funding for a claim in exchange for a share of any financial settlement or damages awarded. This option can be attractive when there are no funds to pursue a strong case. ATE insurance is often used in conjunction with this type of funding.

How can Annecto Legal assist?

When handling disputing solicitor costs, clients should explore all options available to them. At Annecto Legal, we assist a wide range of clients in finding the appropriate litigation funding and after-the-event (ATE) insurance.

Annecto Legal regularly assists clients who are involved in dealing with solicitor costs. If you are looking to challenge your solicitor regarding costs and want to find out whether we can assist you in helping you secure the right deal, then contact Annecto Legal now.