CFA - Increases in Hourly Rates

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If you have used one of the older type Law Society standard Conditional Fee Agreements it may indicate that you will not increase the hourly rates stated in the CFA by more than the rise in the Retail Prices Index.

If that's the case you're probably going to be limited to any annual hourly rate increases in line with the RPI even if you have subsequently written to your client and notified them of higher hourly rates.

In Puksis v Brumby the Court held that few if any clients would check that the increases in the rates notified exceeded rises in the Retail Prices Index and that a unilateral increase notified in that way could not amount to a mutual variation of the Agreement. The absence of complaint (to the increased hourly rates notified) could not be taken to be consent.

If you have therefore written to your client giving details of increases in annual hourly rates on matters funded by a CFA which mentions the RPI it would be worthwhile first of all checking whether the increases exceed rises in the RPI and if they do you should obtain the specific agreement of your client to those annual increases in the hope that that would be sufficient to amount to a mutual variation of the terms of the CFA.

The Puksis case also has some useful discussion about breaches of the CFA Regulations, the Accident Line Protect Insurance Policy and the level of success fee appropriate for this 50/50 case on liability.

If you'd like to have a chat about any of the issues, or indeed any other costs matters, please don't hesitate to contact me.

Andrew
A Neat Legal Services
Law Costs Draftsmen and Costs Consultants