The absence of a written retainer can cause costs chaos, says Simon Gibbs
A useful reminder of the importance of understanding the basics of costs law comes in the form of the decision of Mrs Justice Lang in Fladgate LLP v Harrison [2012] EWHC 67 (QB), [2012] All ER (D) 45 (Feb).
The defendant had instructed the claimant firm of solicitors to undertake certain work. The claimant sent the defendant a draft engagement letter setting out the terms of the instructions and asking the defendant to inform them if the letter was incorrect in any way. No response was made. A final version of the engagement letter was subsequently sent to the defendant, together with the firms’ terms of business and the defendant was invited to complete and sign the letter. No response was received to the letter and the claimant continued to act for the defendant. Various interim invoices were sent to the defendant.
No written contract
In due course, the defendant disputed payment of the invoices and argued the letter
