solicitors costs industrial tribunal

[niddev]

I have a friend who recently won an industrial tribunal for unfair dismissal. She employed a solicitor to advise and help her. Unfortunately the solicitors costs were more than she was awarded, both came to around £3000. She is somewhat unhappy at the outcome and feels foolish that she did not enquire what the solicitors fees would be. Surely they should have asked for costs when she won her tribunal. Incidently the company she won against was almost immediately sold and she has received no payment although she has paid her solicitor. She is now somewhat at a loss and dares not instruct the solicitor to chase her tribunal award because she is scared of further costs. What to do?

 

[Steve Sellers]

Legal costs are rarely awarded in a Tribunal. The Solicitors have a duty to keep the client up to date on costs and likely costs. £3000 for a tribunal doesn't strike me as expensive. That's probably only 15 hours work in total - at most.

As for enforcing the judgement - she should be looking at transferring the judgement to the county court. I'm no expert on this though, so Karl Limpert will be the best man to comment on that.

 

[niddev]

Seems to me that this ought to be a warning that although you may win a tribunal you can still end up out of pocket. I am not sure that that is what is intended when you go to a tribunal for unfair dismissal. You would have thought that legal fees would be at least capped to a % age of the award. Seems that as usual it is just the lawyers who win.

 

[PrestonLad]

Legal costs are rarely awarded in a Tribunal. The Solicitors have a duty to keep the client up to date on costs and likely costs. £3000 for a tribunal doesn't strike me as expensive. That's probably only 15 hours work in total - at most.
.

Really? I've a friend who had a case that was considered reasonably winnable, but declined to take the risk on the advice that he would need to pay both sides' costs if he lost... and that could amount to 20K - because the employer would be rack up big costs.

If the potential liability had been less than 8K, the decision might well have been different.

Do you think the advice on costs was alarmist?

 

[sjbeale]

Costs in an employment tribunal are very rarely awarded. Perhaps the other sides's solicitors threatened that their costs would be due as well if he lost. Solicitors make all kinds of threats throughout the process in order to make the claimant back down. They should have robust legal support themselves to help them fight it if they are not confident.

Clients of legal representatives should aim to know the full costs up front by asking the question. Usually an agreement is signed before work commences which should clearly contain the fee structure. Fees can be charged for all the work done or on a no win no fee basis whereby a percentage of the winnings is taken by the solicitor; this has to be less than 33% in accordance with MOJ regulations. When I represent on a no win no fee basis I charge less than this. I am transparent in my fee structure so everyone knows where they stand.

 

[Cylon]

I'm sorry to say niddev that as stated cost awards in tribunals are rare (but not unheard of) and mainly depends on how malicious either side has been in bringing proceedings or their conduct in them.

Solicitors fees should be agreed upfront or at least a rough guide and any solicitor that doesn't do this should be avoided.

Where industrial tribunals are concerned I'm a great believer in representing yourself as many solicitors with a few exceptions (mainly those that give their time and advice for free on this forum) are just bottom feeders making money from peoples misery. This day an age anyone with an internet connection and a few hours to spare can become quite proficient in tribunal proceedings and how to conduct themselves.

Best to move on and put it down to experience I'm afraid.

 

[Newchodge]

There is an easy fast track way to enforce a tribunal judgment. Have a look at the employment tribunals website, under if you win your case. Sorry I can't post the URL as I haven't been a member for enough posts!

However if the company no longer exists, she will not get anything.

 

[Employment Law Clinic]

Legal costs are rarely awarded in a Tribunal. The Solicitors have a duty to keep the client up to date on costs and likely costs. £3000 for a tribunal doesn't strike me as expensive. That's probably only 15 hours work in total - at most.

As for enforcing the judgement - she should be looking at transferring the judgement to the county court. I'm no expert on this though, so Karl Limpert will be the best man to comment on that.

I agree that £3,000 isn’t expensive, but as a minimum the solicitor should at least have highlighted the fact that their fees would potentially match the value of the award, making the whole exercise rather futile – could have saved £3k and a lot of people a lot of stress.

A judgment can be enforced via the county court or with the assistance of the High Court Enforcement Officers – see below.

Really? I've a friend who had a case that was considered reasonably winnable, but declined to take the risk on the advice that he would need to pay both sides' costs if he lost... and that could amount to 20K - because the employer would be rack up big costs.

If the potential liability had been less than 8K, the decision might well have been different.

Do you think the advice on costs was alarmist?

Was it his own adviser that told him the risk of costs being awarded? I highlight the risk to my clients, but equally my judgment on the potential risk of this being awarded to ensure it isn’t alarmist, but they know there is a (usually very) small risk.


As is usual, I will also notify the other side that I will pursue costs wherever possible. While rare that these are awarded, I normally at least try, and if you can show they acted unreasonably, a better chance of success. I have a case coming up in the tribunals that has already been heard once, overturned on appeal at the EAT, and now going back to the tribunals. As the Appeals Tribunal observed “once the Tribunal’s erroneous considerations are removed from their list of factors pointing to discrimination, that which is left would appear to be but a thin case”, I will probably be pursuing costs, and knowing they have “but a thin case”, I would hope the claimant considers that carefully.

Fees can be charged for all the work done or on a no win no fee basis whereby a percentage of the winnings is taken by the solicitor; this has to be less than 33% in accordance with MOJ regulations. When I represent on a no win no fee basis I charge less than this. I am transparent in my fee structure so everyone knows where they stand.

Is that percentage right Sandra? I didn’t think they decided to introduce this. I could be wrong though.

There is an easy fast track way to enforce a tribunal judgment. Have a look at the employment tribunals website, under if you win your case. Sorry I can't post the URL as I haven't been a member for enough posts!

However if the company no longer exists, she will not get anything.

https://www.gov.uk/employment-tribunals/if-you-win-your-case



Karl Limpert

 

[Cylon]

Really? I've a friend who had a case that was considered reasonably winnable, but declined to take the risk on the advice that he would need to pay both sides' costs if he lost... and that could amount to 20K - because the employer would be rack up big costs.

If the potential liability had been less than 8K, the decision might well have been different.

Do you think the advice on costs was alarmist?

Was this the same friend you started a thread about who had some issues with expenses claims, sorry if it isn't I'm just a big fan of closure and from your post it would fit in with my thoughts at the time on the old thread.

 

[sjbeale]

Is that percentage right Sandra? I didn't think they decided to introduce this. I could be wrong though.

When I registered to represent claimants at employment tribunal Karl the documentation I received from the MOJ made it clear to me that I could not take more than that percentage in total. Therefore I keep the percentage I take below this figure.

 

[sjbeale]

Is that percentage right Sandra? I didn’t think they decided to introduce this. I could be wrong though.

When I registered to represent claimants at employment tribunal Karl the documentation I received from the MOJ made it clear to me that I could not take more than that percentage in total. Therefore I keep my compensation cut below this figure.

 

[PrestonLad]

Was this the same friend you started a thread about who had some issues with expenses claims, sorry if it isn't I'm just a big fan of closure and from your post it would fit in with my thoughts at the time on the old thread.

I don't have a comment for you on that one.