Legal fees

[Stinger]

Hi

i am in the process of trying to claim back £2500 from a builder, he agreed to start work but has kept delaying the start date (beach of contract issue) This however is not the reason for the post.

i decided to use my legal expenses cover on my home insurance and it has been passed to their approved solicitors, they have contacted me with a 19 page letter to sign. However reading this letter it says that they expect the cost to be £75,000 - £100,000 + VAT and my legal expense policy only covers up to £100,000

i just wondered, will it really cost over £100,000 to claim back £2,500 presumably from the small claims court? I am not in a position to cover any significant costs above my £100,000 insurance law limit. Should I just go and do it myself?

thanks

[des8]

Re: Legal fees

Ask them to explain in plain English what you are being asked to sign.
Your LEI @£100.000 cover should be more than sufficient to cover their expenses many times over!!!!!!!!!!!!

[wales01man]

Re: Legal fees

What are you claiming for? May help others on here advise

[Stinger]

Re: Legal fees

I am just looking to recover my £2500, not looking for anything more. I rang the helpline on my legal expenses and they told me what I should do (Notice before Action letter etc). As I have had no reply I called them again and they sent the details to the insurance company who decided I had a valid claim so it was passed on to their approved solicitors who have sent me a form to be signed allowing them to act on my behalf.

i thought this would mean they deal with the legal side of things but I got concerned when they started saying they think it could cost £75-£100K should it "go to trial". My understanding is I just need to go to the small claims court and I could do it myself.

Once signed they will do a "full assessment" of the claim and will have a better idea what it will cost, but by signing it means agreeing for them to act on my behalf and I then become liable for their costs over and above the £100,000 limit.

i have emailed asking if this is likely to happen but not had a reply.

[des8]

Re: Legal fees

I just don't understand how they can quote that sort of figure.
A quick Google brought up a firm offering small claim fixed fee as follows:

Claim Size (£)	Total Fixed Fee (£) + VAT	Fee for each stage (£) + VAT
3,000 - 5,000	999.00	333.00
5,001 - 8,000	1,599.00	533.00
8,001 - 10,000	1,998.00	666.00

There could be extra costs such as experts fees etc.

I have heard of solicitors suggesting fees upto £15000 but in excess of £100,000..... are they going to fight this in the European Court of Justice/

[Amethyst]

Re: Legal fees

It sounds like it may be some kind of miscommunication / misunderstanding - maybe a copy of the letter ( suitably redacted) and terms (client care letter maybe? ) might assist figuring it out ?

[R0b]

Re: Legal fees

Don’t be afraid to ask the solicitors how they have estimated those legal costs. You should explain that the sum of money you are seeking is £2,500 which is likely to end up on the small claims track should it go to trial. So how can they estimate that legal fees are likely to be 30-40% of the damages sought. Those estimations are entirely disproportionate to the sums being claimed so you should defInitely challenge them on this.

Of course this is assuming you have read the clause correctly. It’s one thing saying that they believe legal fees for your case between 75-100k and it’s another thing to say that if fees exceed 100k the. You will be liable. As Amethyst has suggested, if you post up your documents we can take a look.