Litigation Letter
Contentious or non-contentious?
Bilkus v Stockler Brunton (A Firm) [2009] EWHC 1957 (Ch) 30 July; NLJ 7 August
The claimant retained the defendant solicitors to act for him in a dispute about his interest in a company. The solicitors
delivered a series of bills in which the profit costs were charged by reference to hourly rates in accordance with the agreement
between the parties. The final invoice included a charge of £50,000 described as ‘Uplift on all bills …’. The bulk of that
invoice related to the representation of the claimant’s interests in a share valuation which had been ordered by the court
at the conclusion of the proceedings. The solicitors applied for permission to amend the narrative on the bill on the basis
that the previous bills were all final bills for contentious work which could not be increased and that only the last bill,
which related largely to noncontentious work, was intended to be subject to the uplift claimed. The costs judge refused permission
to amend the invoice. He held that in so far as the uplift claimed related to non-contentious business, it was not claimed
‘as a value element’ and therefore could not be allowed as such under the Solicitors’ (Non-Contentious Business) Remuneration
Order 1994. He further held that, as had been agreed, the fees chargeable by the solicitors were confined to time charges
at specified hourly rates plus disbursements. The claimant submitted that the terms of the retainer only permitted hourly
rates to be charged and the relevant work was contentious business.