Part III Remuneration of Solicitors

Non–contentious business

C1P1C1056 Orders as to remuneration for non–contentious business.

1

For the purposes of this section there shall be a committee consisting of the following persons—

C2a

the F1Lord Chancellor;

C2b

the Lord Chief Justice;

C2c

the Master of the Rolls;

C2d

the President of the Society;

F2C2da

a member of the Legal Services Board nominated by that Board;

C2e

a solicitor, being the president of a local law society, nominated by the F3Lord Chancellor to serve on the committee during his tenure of office as president; and

C3f

for the purpose only of prescribing and regulating the remuneration of solicitors in respect of business done under the F4Land Registration Act 2002, the Chief Land Registrar appointed under that Act.

C42

The committee, or any three members of the committee (the F5(the Lord Chancellor being one), may make general orders prescribing the general principles to be applied when determining the remuneration of solicitors in respect of non–contentious business.

3

The F6Lord Chancellor, before any order under this section is made, shall cause a draft of the order to be sent to the F7Society; and the committee shall consider any observations of the F7Society submitted to them in writing within one month of the sending of the draft, and may then make the order, either in the form of the draft or with such alterations or additions as they may think fit.

C54

F8The principles prescribed by an order under this section may provide that solicitors should be remunerated—

b

by a gross sum; or

c

by a fixed sum for each document prepared or perused, without regard to length; or

d

in any other mode; or

e

partly in one mode and partly in another.

C55

F9 The general principles prescribed by an order under this section may provide that the amount of such remuneration is to be determined by having regard to all or any of the following, among other, considerations, that is to say—

C6a

the position of the party for whom the solicitor is concerned in the business, that is, whether he is vendor or purchaser, lessor or lessee, mortgagor or mortgagee, or the like;

b

the place where, and the circumstances in which, the business or any part of it is transacted;

c

the amount of the capital money or rent to which the business relates;

C6d

the skill, labour and responsibility on the part of the solicitor F10, or any employee of his who is an authorised person, which the business involves;

e

the number and importance of the documents prepared or perused, without regard to length.

F11C55A

In subsection (5) “authorised person” means a person who is an authorised person in relation to an activity which is a reserved legal activity, within the meaning of the Legal Services Act 2007 (see section 18 of that Act).

C56

An order under this section may authorise and regulate—

a

the taking by a solicitor from his client of security for payment of any remuneration, to be ascertained by F12assessment or otherwise, which may become due to him under any such order; and

b

the allowance of interest.

C57

So long as an order made under this section is in operation the F13assessment of bills of costs of solicitors in respect of non–contentious business shall, subject to the provisions of section 57, be F14subject to that order.

8

Any order made under this section may be varied or revoked by a subsequent order so made.

9

The power to make orders under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament; and the M1Statutory Instruments Act 1946 shall apply to a statutory instrument containing such an order in like manner as if the order had been made by a Minister of the Crown.

C7C1157 Non–contentious business agreements.

1

Whether or not any order is in force under section 56, a solicitor and his client may, before or after or in the course of the transaction of any non–contentious business by the solicitor, make an agreement as to his remuneration in respect of that business.

2

The agreement may provide for the remuneration of the solicitor by a gross sum F15or by reference to an hourly rate, or by a commission or percentage, or by a salary, or otherwise, and it may be made on the terms that the amount of the remuneration stipulated for shall or shall not include all or any disbursements made by the solicitor in respect of searches, plans, travelling, F16taxes , fees or other matters.

3

The agreement shall be in writing and signed by the person to be bound by it or his agent in that behalf.

4

F17Subject to subsections (5) and (7), the agreement may be sued and recovered on or set aside in the like manner and on the like grounds as an agreement not relating to the remuneration of a solicitor.

5

If on any F18assessment of costs the agreement is relied on by the solicitor and objected to by the client as unfair or unreasonable, the F19costs officer may enquire into the facts and certify them to the court, and if from that certificate it appears just to the court that the agreement should be set aside, or the amount payable under it reduced, the court may so order and may give such consequential directions as it thinks fit.

F206

Subsection (7) applies where the agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

7

If, on the F21assessment of any costs, the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the F22costs officer may enquire into—

a

the number of hours worked by the solicitor; and

b

whether the number of hours worked by him was excessive.

C8C958 Remuneration of a solicitor who is a mortgagee.

1

Where a mortgage is made to a solicitor, either alone or jointly with any other person, he or the firm of which he is a member shall be entitled to recover from the mortgagor in respect of all business transacted and acts done by him or them in negotiating the loan, deducing and investigating the title to the property, and preparing and completing the mortgage, such usual costs as he or they would have been entitled to receive if the mortgage had been made to a person who was not a solicitor and that person had retained and employed him or them to transact that business and do those acts.

2

Where a mortgage has been made to, or has become vested by transfer or transmission in, a solicitor, either alone or jointly with any other person, and any business is transacted or acts are done by that solicitor or by the firm of which he is a member in relation to that mortgage or the security thereby created or the property thereby charged, he or they shall be entitled to recover from the person on whose behalf the business was transacted or the acts were done, and to charge against the security, such usual costs as he or they would have been entitled to receive if the mortgage had been made to and had remained vested in a person who was not a solicitor and that person had retained and employed him or them to transact that business and do those acts.

3

In this section “mortgage” includes any charge on any property for securing money or money’s worth.