Repudiatory breach by solicitors

Minkin v Cawdery Kaye Fireman & Taylor (a firm) [2011] EWHC 177 (QB); 7 February

Gary Minkin instructed the appellant solicitors to represent him at a final court hearing in relation to an occupation and non-molestation order. The solicitors had estimated that their overall charges and expenses were likely to be £3,500 plus VAT and Mr Minkin had made a payment of £2,000 on account. However, the first bill in the sum of £5,472.50 exceeded the estimate and the client promptly complained. The solicitors explained that the costs estimate had been exceeded because of additional work and delivered a second bill for £1,092 for subsequent work carried out and refused to carry out any further work without payment. On a detailed assessment of the two bills, the master found the solicitors were in repudiatory breach of contract as, in accordance with clause 6 of the firm’s standard business terms, the client had a reasonable justification for withholding payment of the balance of the first bill because it had exceeded the estimate. Consequently, the solicitors were not entitled to any fees after the client had accepted their repudiatory breach.