Court of Appeal holds that solictor must be paid
A solicitor was contractually entitled to suspend work for a client who refused to pay an interim bill, the Court of Appeal has unanimously held in an important case on solicitors’ retainers.
Cawdery Kaye Fireman & Taylor (CKFT) v Minkin [2012] EWCA Civ 546 arose from a decision of a costs judge, Master O’Hare, that the solicitor, CKFT’s Philip Cooper, was not entitled to costs, due to his unlawful termination of the retainer.
Gary Minkin had hired Cooper to act in divorce proceedings. Cooper estimated the case would cost £3,500 plus VAT but, due to an issue over tenants in the family home, the costs rose beyond this and Cooper presented Minkin with an interim bill of £5,500 plus VAT. Minkin refused to pay but expected Cooper to do further work on the retainer.
Cooper warned he would suspend work pending payment, Minkin refused to pay, and the retainer was terminated.
Master O’Hare, noting the presumption that a solicitor’s retainer to conduct litigation is an entire contract, held that CKFT, not the client, had terminated the retainer. CKFT had therefore terminated before completion and was not entitled to payment.
This decision was upheld on appeal by Mr Justice Cranston. However, the Court of Appeal has now overturned it, unanimously ruling that CKFT was entitled to suspend work, and that the client had terminated the retainer by expressing a lack of confidence.
Giving judgment, Lord Justice Ward said: “Not being prepared to act until money is paid shows a willingness to act when there is money on account.”
