Solicitor wants fees

[Landlord]

Hello everyone, new to the forum so please bear with me.

We let a property to a tenant who folded on last 2 payments, arranged a court order for both the guarantor and the tenant and got the property. What we failed to do is get the guarantor's signature to say she is the guarantor (only a witness signature). The guarantor took us to small claims to clear her name, in attendance we approved we will clear her name. Two weeks later Her solicitor has issued us a letter stipulating we pay solicitor costs amounting to £2,000 within 7 days.

Can they do that? I thought you can't claim legal fees in the small claims.
Even if they did could we reduce it? pay in installments?We are self employed does that help?

Anyway the final hearing is april 08.
Any advice would be much appreciated.

[sirearl]

First thing I would do is ask for a detailed costing without admitting responsibility for the invoice.

the legal profession really are a piece of work ,societies well dressed scum.

Earl

[Tungstone]

Ask the Solicitors for a " remuneration certificate"
You forward this to the Law Society who will assess if the fees have been correctly applied

Question:
Did the Solicitors issue you with a Client care letter before they were instructed to proceed?

This letter should give an estimate of costs, including who is dealing with the matter, whom you can complain to, what the rates are

[Ashley]

tell them to go swing, if it was in the small claims court (under £5,000) they can not recover their costs, end of story (apart from a few exceptions) and in the event they did want costs they should have asked for it at court anyway.

[Landlord]

Thanks for response guys..

Earl: Costing seems quite ridiculous for example 10 Tel calls £19.50 per call. To who we don't know.

Tungstone: Haven't received a Client care letter. I will definitely ask for one and a remuneration certificate, Thanks.

Ashley: The claimants did ask for costs in the case at court hearing, although the district judge claimed it was petty, she advised a final hearing to dspute this.(april 08)

[Antonia @limeone.com]

I do not fully understand your posting above, are you saying the letter from the solicitor is telling you the case will fail and unless you withdraw your application you will also get a claim for their costs? Or is it that you already have an order in your favour? If so on what basis do they claim costs?

Where there is a case involving determination of whether someone is a guarantor or not it is not often a small claim it may be necessary for the case to go before a more senior judge so the court decides which route it takes.

I suggest you take legal advice on the contents of the solicitors letter before proceeding any further. If this hearing in April 08 is just relating to the costs then the court will decide what if any are reasonable and may disallow all of those claimed. Without knowing more it is impossible to advise on what basis they could even consider a claim for their costs.

[Ashley]

what where you taken to court for, and what was the value of monetary claim?

[Landlord]

The defendant claims that she was not legally a guarantor (as I don't have her signed statement) and we should not have issued proceedings against her.

She seeked an order for the claim against her to be dismissed and costs in the case to be reimbursed. I set the judgement aside in the initial hearing (Jan) as I had no written proof of her signature on the guarantor agreement (it was only signed by the tenant).

Her Solicitor has confirmed that the application to set judgement aside was successful and therefore we discontinue our claim against her and consent to an order to pay her costs. Seven days have been given to pay this or dispute it at the final hearing (apr 08), otherwise more cost will be incurred to prepare for this hearing.

[Ashley]

did you in the first place get a judgement? and was this was a set aside?

[Tungstone]

Thanks for response guys..

Earl: Costing seems quite ridiculous for example 10 Tel calls £19.50 per call. To who we don't know.

Tungstone: Haven't received a Client care letter. I will definitely ask for one and a remuneration certificate, Thanks.

Ashley: The claimants did ask for costs in the case at court hearing, although the district judge claimed it was petty, she advised a final hearing to dspute this.(april 08)

Landlord

If no Client Care Letter, they cannot extend fees!!

[Ashley]

sorry, it was a set aside, Ok what reason did she give to allowing the judgement in the first palce, and what was the value? ie why did she not enter a defence.

[Tungstone]

tell them to go swing, if it was in the small claims court (under £5,000) they can not recover their costs, end of story (apart from a few exceptions) and in the event they did want costs they should have asked for it at court anyway.

Solicitor CAN claim their costs even if in small claims court and under 5k!
Therefore, if you have a strong case, always claim higher than 5k, ie: £5001.00
Case will ofcourse go to Crown
Then u can ask for your costs

[Ashley]

Tugs, he (or she OP) is the claimant, she is defendant who made an application and he was the respondent. it not his lawyers looking to recover their fees, but the defendants.

BTW who did they use to plead barrister? in any event £2k sounds to much on the infomation you are giving us.

[Antonia @limeone.com]

If the judgment was set aside, and not struck out then the case continues however it seems that you are saying here that the case has been struck out or agreed not to continue and her solicitors are now seeking wasted costs.

The judge has the right to award costs against the claimant on cases brought without grounds/merit so much will depend on the next hearing unless you settle costs in the meantime.

[Cred-X]

A question that should be asked in the hearing is why the defendant guarantor failed to defend the initial claim against her, thereby resulting in the original judgment.
Off the cuff, but £2,000 sounds like an awful lot of solicitors fees for simply setting aside in small claims court.

[Landlord]

A question that should be asked in the hearing is why the defendant guarantor failed to defend the initial claim against her, thereby resulting in the original judgment.
Off the cuff, but £2,000 sounds like an awful lot of solicitors fees for simply setting aside in small claims court.


The defendant guarantor couldn't defend the initial claim as the district court failed to write the date of the hearing on the letter given to her. Which makes me think, isn't this the fault of the COURT rather than us for escalating the situation.

Could we defend our case by saying the district court induced the defendant guarantor to fork out legal costs from not stipulating a date on the court hearing, therefore losing her right to defend herself right from the beginning??

[Landlord]

If the judgment was set aside, and not struck out then the case continues however it seems that you are saying here that the case has been struck out or agreed not to continue and her solicitors are now seeking wasted costs.

The judge has the right to award costs against the claimant on cases brought without grounds/merit so much will depend on the next hearing unless you settle costs in the meantime.


We are in the process of writing a letter to reduce these costs, maybe get a more detailed breakdown (with evidence). We thought of a "remuneration certificate" but this is only for non-contentious costs.

I spoke to the law society today but complaints are only for solictors of the client.

[Ashley]

Slow down, your panicking.

As long as you have acted resaonable thoughout you have little danger of having to pay £2k or infact any costs if you play your cards right.

this needs to get back to basics to understand what has happened.

You issued 1 claim to 2 defendants, yes

1) did they enter a defence? and if yes did they send in their allocation questionnaire with fee? and if yes was it then the court failed to give the date and time for the listing?



Or

2) did they simple fail to date the defendants N1 form? and if yes has this been produced as evidence?

This is very important if it was number 2 did they file ANY defence?

[Ashley]

also did you call in the guarantor before you issued court proceedings? and what was her reply to this.

Did you then inform them that court proceedings would be commenced in xx number of days?

[Ashley]

also when she made her application for setting aside, what was it for just the set aside or set aside and something else as well at the same time.

[Landlord]

Slow down, your panicking.

As long as you have acted resaonable thoughout you have little danger of having to pay £2k or infact any costs if you play your cards right.

this needs to get back to basics to understand what has happened.

You issued 1 claim to 2 defendants, yes

1) did they enter a defence? and if yes did they send in their allocation questionnaire with fee? and if yes was it then the court failed to give the date and time for the listing?


Or

2) did they simple fail to date the defendants N1 form? and if yes has this been produced as evidence?

This is very important if it was number 2 did they file ANY defence?

The court failed to give a date and time for the hearing on the N5 form, however our N5 was dated correctly. The defendant claims they therefore couldn't attend the hearing. The defence (guarantor) was filed after the hearing date and upon the defendants(tenant and guarantor)receiving an order for posession.

Don't know if they received allocation questionaire with fee.

[Landlord]

also did you call in the guarantor before you issued court proceedings? and what was her reply to this.

Did you then inform them that court proceedings would be commenced in xx number of days?

Our solicitor wrote that legal action would take place and we also phoned the guarantor, but not notifying them of xx days.

[Ashley]

AHHHHHHHHHH right, you sought possession and monetary order.

Did any one apart from your party turn up at court?

[Landlord]

Nobody turned up at court from her party.

[Ashley]

Don't know if they received allocation questionaire with fee.forget that n/a I thought it was a small claims matter