LSC wins legal action on solicitor overpayments
The Legal Services Commission (LSC) has won three test cases against solicitors to recover approximately £250,000 in overpayments.
About 35 cases stayed pending the outcome of these test cases will now be brought forward, which could see the LSC reclaiming about £30m from legal aid solicitors, although no official figures have been released.
In each of the cases—LSC v Loomba, LSC v Ulasi, and LSC v Simon Carter & Ors [2012] EWHC 29 (QB)—the solicitor concerned received payments on account under legal aid certificates but did not submit a final bill and claim for costs. The LSC therefore assessed the amount due under those certificates as nil and sought to reclaim the outstanding balance.
In one of the cases, the LSC also claimed the excess owing where the costs allowed on the costs assessment were less than the amount of the payments on account claimed by the solicitor. In another case, the LSC claimed the amount of payments on account where the solicitor had recovered costs from the opposing party.
The solicitors argued that the LSC did not have the power to carry out nil assessments, and therefore had acted unlawfully, and had breached their human rights.
Mr Justice Cranston, however, rejected these arguments. He also rejected two of the defendants’ argument that a deed of settlement entered into between the LSC, the Law Society and the Ministry of Justice prevented the LSC from bringing proceedings against them.
An LSC spokesperson says: “We are very pleased that the court has found in our favour, as this is an important principle which affects the legal aid fund.
“We must always ensure that taxpayers’ money is managed properly, and recovering overpayments or recouping payments on account in these circumstances helps us do that.”
Adam Taylor, partner at CKFT, who acted for the LSC, says: “We are pleased to have been able to assist the LSC in recovering this debt.”
