Bankruptcy and Insolvency Practitioner

[DCASTLE]

Thank you so much for your time and help!

Interestingly, I just googled my solicitor firm, this is what it says about the firm on the legal 500 website.

'...with particular expertise in resolving contractual disputes, shareholder disputes, and insolvency matters.'

Not sure if it is all correct based on the insolvency mess that I am experiencing.

[atticus]

You seem to have had a good result on the shareholder issue, albeit at considerable expense. I suspect that your problem is that nothing further was done about the costs, at least in part due to the bankruptcy of your opponent. That seems understandable, and I think the stance taken by the IP needs to be challenged.

Can you ask that someone else in the firm look at your case and assist you?

[DCASTLE]

Thank you for your reply. I was very pleased to see it, as I have just been contacted by the solicitor's firm.

I am contacted by the assistant who previously helped my solicitor with my court case. He has advised me to open a new file with the firm so he can discuss/deal with the IP further on my behalf. His hourly rate is Ł384.

My question is: is it worth having him look at the case, or should I request a more senior solicitor to handle it, even if their rate is higher?

I honestly didn't think making a claim would be so difficult and costly.

[DCASTLE]

By the way, can I include these additional legal costs to my creditor claim with the IP please? I have a feeling the additional legal costs will be thousands of pounds. Thanks!

[atticus]

I suspect that is unlikely, but your lawyers may be able to find an argument that sticks.

And as to the rate - when I left private practice in 2021, at 38 years qualified, my hourly rate was 275 + VAT.

[DCASTLE]

I wish I could appoint you to represent me instead...

[DCASTLE]

I have just read a couple of PDFs that my solicitors sent to the IP people at the beginning of this week. One is labelled 'Costs Submissions' and was issued 3 days before the final hearing. Throughout this document, there is no mention of the up-to-date costs of my case. In your opinion, shouldn't an up-to-date Statement of Costs have accompanied that submission?

Also, another PDF is labelled as my costs and was issued five months before the final hearing. It states at the beginning: "The costs of the defendant (as at xx.xx.24. to be updated prior to handing down judgment to include hearing and any further work undertaken)." Am I correct in thinking there should have been an updated Statement of Costs filed and served after the initial one?

I have started to think my legal representative might not have done their job properly and correctly in my court case. If that is the case, I take it I should make another complaint about their service.

My solicitor's hourly rate is almost double your 2021 rate.

[atticus]

See post #9, answer to Q1.

[DCASTLE]

I am sorry if I am being thick here.

I understand a full statement of costs is not always mandatory. However, I am trying to understand the judge's calculation at the final hearing. Could you please explain how the payable amount was determined, and what documentation the judge would have relied upon?

There are several thousand pounds more between the 70% figure the judge awarded me and the 70% of initial costs statement my solicitor served five months before the hearing.

The judge must have been informed of the new costs. How did he find out, and what information was he given?

I think that information is what I need to send to the IP people for my claim.

[Naoko]

This link might be helpful: https://england.shelter.org.uk/profe...s_are_assessed

[Naoko]

Additionally, this is from AI: 1. Does every court case require a Statement of Costs?

No, not exactly. The document required depends on the "Track" of the case and how the costs are being assessed.

• Summary Assessment (Statement of Costs - Form N260): In shorter hearings (usually hearings lasting less than a day) or "Fast Track" trials, the judge assesses the costs on the spot at the end of the hearing. To do this, the solicitor must file a "Statement of Costs" (Form N260) 24 hours in advance.

• Detailed Assessment (Bill of Costs): In Multi-track cases (which your solicitor confirmed yours is), the costs are usually too high and complex for a judge to check on the spot. Instead, the judge makes an order for "Detailed Assessment."

The Answer to your puzzle:

If your case was a Multi-track trial, your solicitor likely did not produce a Statement of Costs (Form N260) for the final hearing because they expected the costs to be assessed later via a detailed procedure. This is standard for Multi-track cases.

If the IP is asking for a "Statement of Costs" specifically, they may be using the term loosely to mean "give me a formal breakdown," or they may be misunderstanding the procedural stage your case reached. 2. If the judge awarded 70%, surely they saw a document?

Not necessarily.

In UK civil litigation, a judge does not need to see the total number to award a percentage.

• The Principle: The judge decides who pays (the loser pays the winner) and what proportion (e.g., "70% because the winner wasted some time").
• The Quantum (The Amount): Calculating the actual cash figure is a separate process.

When the judge ordered "70% of your costs," they established your right to be paid, but they did not establish the amount. The judge assumes that the amount will be calculated later by a specialist judge (a Costs Judge) if the parties cannot agree.

[DCASTLE]

Thank you so much for the hyperlink and your note.

I do remember the Insolvency Practitioner (IP) asking me if I had a detailed assessment right after I submitted my creditor claim form and the legal cost invoices. I didn't know what it was—I had never seen one. I did ask my solicitor about it, but he never got back to me.

When I told the IP I didn't have the detailed assessment and asked how to get one, the IP also did not respond. I mentioned this earlier in post #3.

So, in other words, a detailed assessment is what I actually need to submit to the IP, correct?

Looking at my solicitor's invoices, I see I was charged for his time related to 'Costs Draftsman' and 'Calculating costs to date' about a month before the final hearing.

Furthermore, in a written letter my solicitor sent me the day after the final hearing, he outlined how much the judge had ordered the claimant to pay me, plus the remaining 30% based on negotiation. He added, "If this is not agreed, we will then proceed to detailed assessment." Given that the claimant did not agree to pay the ordered amount, a detailed assessment surely must have been initiated. However, I don't see any charges from my solicitor specifically for a detailed assessment. I was only charged for issuing a Statutory Demand against the claimant.

I suspect my solicitor may have missed the detailed assessment step.