Solicitor-client disputes persist despite Belsner ruling, say costs lawyers 

Efforts to reduce disputes between solicitors and clients have shown little success, according to the Association of Costs Lawyers’ (ACL) latest survey.  

The 2022 Court of Appeal ruling in Belsner aimed to limit solicitor-client disputes, but only 12% of ACL members surveyed reported a reduction in challenges to solicitors’ bills. The poll, conducted among 103 costs lawyers – around a fifth of the membership – indicates that such disputes remain a significant issue.  

Mixed progress on costs and mediation 

The survey also revealed that solicitors continue to struggle with costs budgeting. Only 10% of costs lawyers said solicitors always adhered to their budgets, while 54% reported occasional breaches, and 24% said budgets were always exceeded. Additionally, a third of respondents observed an increase in applications to vary budgets, reflecting ongoing challenges in financial planning.  

Interest in mediation to resolve costs disputes is growing, with 24% of costs lawyers noting increased use. However, nearly as many have never participated in a mediation, suggesting it is not yet a widely adopted practice.  

Growth for costs lawyer practices 

Despite these challenges, costs lawyer practices have experienced growth. Over half of respondents reported firm expansion in the past year, driven by increased workloads, recruitment, and enhanced marketing efforts. Only 11% reported downsizing.  

ACL Chair Jack Ridgway commented, “Costs Lawyers bring skill and professionalism to these matters in an effort to ensure they run as smoothly as possible. The fact that so many have seen their practices grow, despite the economic headwind, is a testament to what they offer solicitors and others.” 

“Helping ex-clients challenge bills is also the business model of some solicitors’ firms, so it is perhaps no great surprise that little seems to have changed since Belsner,” he added. 

Concerns over new fixed costs process 

The introduction of a £500 fixed fee for disputes under the extended fixed costs regime has sparked concern. Nearly 40% of respondents believe this fee will make disputes hard to manage, while 23% fear the removal of part 36 provisions will increase disagreements.  

With strong recruitment and uptake of the Costs Lawyer Qualification, the profession is well-positioned for the future. However, persistent solicitor-client disputes and regulatory challenges will require continued focus. 

Image: © Kaboompics.com from Pexels via Canva

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk