header-logo header-logo

Judge expresses frustration at lack of costs safeguards

20 November 2024
Issue: 8095 / Categories: Legal News , Costs , Regulatory
printer mail-detail
A costs judge has reduced a bill claimed at nearly £260,000 to zero, in a ruling that highlights a gap in legal regulation.

Costs judge Jennifer James set out a series of problems she spotted with a 65-page bill, in Kapoor v Johal [2024] EWHC 2853 (SCCO). These included claiming more money than the law firm charged its client and creating attendance notes after the event in an attempt to justify the costs.

Costs Judge James said: ‘Having spent two days in court and as long again after the hearing reviewing the file, I have found the bill to be riddled with claims that (regrettably) I find dishonest, and unreasonable and improper.’

She referred the solicitor to the Solicitors Regulation Authority for investigation but was unable to do the same for the costs draftsman, as he was unregulated. The judge said: ‘If [he] were a costs lawyer, I would report him to the ACL [Association of Costs Lawyers], but as he is not practising in the regulated sector, I simply note that I consider his conduct also warrants investigation.’

ACL vice-chair David Bailey-Vella said the ruling ‘highlights a significant shortcoming of the current regulatory regime.

‘Costs has become a very specialist area of law and it is not for those without rigorous training and oversight. It is hard to understand why solicitors are willing to put their costs recovery at risk by not ensuring they take expert advice from properly trained and regulated professionals. That is, after all, what they advise their own clients to do.’

Bailey-Vella urged the Legal Services Board to take action to ensure regulatory safeguards are put in place. He pointed out there is no other part of the legal profession where unregulated providers working for unregulated businesses are able to do exactly the same work as regulated ones but without any of the consumer protections in place.

Issue: 8095 / Categories: Legal News , Costs , Regulatory
printer mail-details

MOVERS & SHAKERS

Quinn Emanuel—James McSweeney

Quinn Emanuel—James McSweeney

London promotion underscores firm’s investment in white collar and investigations

Ward Hadaway—Louise Miller

Ward Hadaway—Louise Miller

Private client team strengthened by partner appointment

NLJ Career Profile: Kate Gaskell, Flex Legal

NLJ Career Profile: Kate Gaskell, Flex Legal

Kate Gaskell, CEO of Flex Legal, reflects on chasing her childhood dreams underscores the importance of welcoming those from all backgrounds into the profession

NEWS
Overcrowded prisons, mental health hospitals and immigration centres are failing to meet international and domestic human rights standards, the National Preventive Mechanism (NPM) has warned
Two speedier and more streamlined qualification routes have been launched for probate and conveyancing professionals
Workplace stress was a contributing factor in almost one in eight cases before the employment tribunal last year, indicating its endemic grip on the UK workplace
Professor Dominic Regan of City Law School highlights a turbulent end to 2025 in the civil courts, from the looming appeal in Mazur to judicial frustration with ever-expanding bundles, in his final NLJ 'The insider' column of the year
Antonia Glover of Quinn Emanuel outlines sweeping transparency reforms following the work of the Transparency and Open Justice Board in this week's NLJ
back-to-top-scroll