Hourly Rates in CFAs

Useful Articles > Hourly Rates in CFAs (print this page )

I have been involved in a case recently where we prepared a Bill in respect of a matter which had been conducted under a CFA.

During the course of negotiations an issue arose as to whether the Claimant's solicitors were entitled to any increases in the hourly rates from the initial hourly rate which was agreed in the CFA which had been signed some years earlier. In the end the costs were compromised and the argument wasn't tested.

It is worth remembering that it is essentially a matter of what is agreed contractually between you and your client and the first thing to check is that your CFA does have provision in it for the hourly rates to be reviewed and increased.

I also think it would be a good idea when the rates are reviewed to get your client to agree to the increases in writing.

If the provision in your CFA for the rates to be reviewed is too vague it might be argued by a paying party that you are only entitled to one review (at best) and if the client has not agreed to the increases you may also be faced with the argument that what you are doing is unilaterally making a decision about what you are going to charge which the client hasn't agreed to.

There is some quite useful discussion about this point in the case of Cox and Carter -v- MGN Limited.