Tim Martin Interiors Ltd v Akin Gump LLP

Tim Martin Interiors Ltd v Akin Gump LLP

A third party assessment under section 71 of the Solicitors Act 1974 is limited to excluding items for which the third party is not liable and items only recoverable by special arrangement; it does not permit reduction of items properly agreed between solicitor and client, nor does it allow an order for repayment by the solicitor to the third party where the client has paid the bill. The third party's remedy for overpayment lies against the client, not the solicitor.

Parties
Claimant/appellant: Tim Martin Interiors Ltd; Defendant/respondent: Akin Gump LLP
Jurisdiction
England and Wales
Judgment Date
21 December 2011
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) and Senior Courts Costs Office
Outcome
Appeal dismissed
Legal Topics
Solicitors' Costs Assessment, Third Party Costs Liability, Mortgagee and Mortgagor Costs, Section 71 Solicitors Act 1974, Assessment Procedure
Civil Procedure Costs Law Contract Law Solicitors' Costs Assessment Third Party Costs Liability Mortgagee and Mortgagor Costs Section 71 Solicitors Act 1974 Assessment Procedure

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Parties

Tim Martin Interiors Ltd

Claimant/appellant

Akin Gump LLP

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) and Senior Courts Costs Office

Legal Issues

  1. 1 Scope of third party assessment under section 71 Solicitors Act 1974
  2. 2 Whether a third party can challenge the reasonableness of costs agreed between solicitor and client
  3. 3 Whether a solicitor can be ordered to repay a third party sums paid to the client but not properly due under the mortgage

Ratio Decidendi

A third party assessment under section 71 of the Solicitors Act 1974 is limited to excluding items for which the third party is not liable and items only recoverable by special arrangement; it does not permit reduction of items properly agreed between solicitor and client, nor does it allow an order for repayment by the solicitor to the third party where the client has paid the bill. The third party's remedy for overpayment lies against the client, not the solicitor.

Court Disposition

Appeal dismissed

Orders

  • Order of Lewison J affirmed, setting aside the final costs certificate and the Master's order for payment by the solicitor to the third party.
  • Matter remitted to another costs judge for assessment on the correct basis, though the court doubted the utility of a new assessment.