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9 months ago I instructed a firm of solicitors and received a letter of engagement which set out the expected costs of the case to a certain point, and also included the fact that I would need to deposit X thousand pounds into their client holding account, which would be transferred to another account as costs were incurred. I made the deposit without issue.
I was told that I would be issued with an invoice at least monthly for work undertaken, and that they wouldn't undertake further work if the amount I had in the client holding account was exhausted (all in the letter). Although not in the letter itself, this was described to me as being a buffer so that costs can't spiral without me knowing or approving the expense etc. Common sense based on the wording of the letter really.
The solicitors were poor at times in terms of actually doing any work, and I never received an invoice but wasn't overly fussed by this as I knew there was X in the client holding account and that they wouldn't do any work if the money had gone (I assumed the engagement letter told the truth).
6 months on when the case was finalised, I requested a final invoice and clearly the solicitors hadn't prepared any documents along the way and thus I had to badger for over a month, to finally be presented with a demand for a couple of extra thousand pounds in an email.
This was a surprise of course, as I was holding them to their engagement letter. I therefore made a complaint to them, on the basis that they clearly had no idea going along how much they had incurred in terms of costs etc. and had basically carried out more work than the deposited funds would allow. I did also offer to settle the amount outstanding pending the result of the complaint, mainly fearful of a spurious interest bill or legal issue later, and ultimately if the costs had been incurred then so be it I should pay.
The response I have received from the head of the firm accepted that no invoices had ever been issued, no money had ever been transferred from the holding account to the working account etc. but that the work had been done. Though not his exact words, it was clear that they had no idea how much had been incurred in terms of costs until I asked for the final bill.
Their defence was COVID19, staff shortages and an office move (that occurred after I asked for the bill) and that I had known that the costs could have been significantly more as this was highlighted in the engagement letter (a sum based on a case going the distance so to speak which it never got anywhere near to that).
I was also told that the engagement letter isn't enforceable and that they basically don't need to stick to what is in there.
I have been offered a £1,000 reduction on the bill and tbh the cost isn't the issue as much as the lack of organisation there and the principal of the matter (I have no doubt the other way round the firm would have been jumping on me if I didn't hold up my end of the agreement).
My ultimate question is, is the letter of engagement a binding contract and thus enforceable?
This isn't about the money really, I just don't like firms that should operate to a higher standard (and can be held to one) not doing so.
I was told that I would be issued with an invoice at least monthly for work undertaken, and that they wouldn't undertake further work if the amount I had in the client holding account was exhausted (all in the letter). Although not in the letter itself, this was described to me as being a buffer so that costs can't spiral without me knowing or approving the expense etc. Common sense based on the wording of the letter really.
The solicitors were poor at times in terms of actually doing any work, and I never received an invoice but wasn't overly fussed by this as I knew there was X in the client holding account and that they wouldn't do any work if the money had gone (I assumed the engagement letter told the truth).
6 months on when the case was finalised, I requested a final invoice and clearly the solicitors hadn't prepared any documents along the way and thus I had to badger for over a month, to finally be presented with a demand for a couple of extra thousand pounds in an email.
This was a surprise of course, as I was holding them to their engagement letter. I therefore made a complaint to them, on the basis that they clearly had no idea going along how much they had incurred in terms of costs etc. and had basically carried out more work than the deposited funds would allow. I did also offer to settle the amount outstanding pending the result of the complaint, mainly fearful of a spurious interest bill or legal issue later, and ultimately if the costs had been incurred then so be it I should pay.
The response I have received from the head of the firm accepted that no invoices had ever been issued, no money had ever been transferred from the holding account to the working account etc. but that the work had been done. Though not his exact words, it was clear that they had no idea how much had been incurred in terms of costs until I asked for the final bill.
Their defence was COVID19, staff shortages and an office move (that occurred after I asked for the bill) and that I had known that the costs could have been significantly more as this was highlighted in the engagement letter (a sum based on a case going the distance so to speak which it never got anywhere near to that).
I was also told that the engagement letter isn't enforceable and that they basically don't need to stick to what is in there.
I have been offered a £1,000 reduction on the bill and tbh the cost isn't the issue as much as the lack of organisation there and the principal of the matter (I have no doubt the other way round the firm would have been jumping on me if I didn't hold up my end of the agreement).
My ultimate question is, is the letter of engagement a binding contract and thus enforceable?
This isn't about the money really, I just don't like firms that should operate to a higher standard (and can be held to one) not doing so.
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