Mills Chody - solicitors LLP

 

How we calculate our charges

The main factors in calculating solicitors' charges, as laid down by law, are the time spent and the value of the matter to the client. Other factors that may be relevant in particular cases are complexity, the need for special expertise and speed where a matter has to be dealt with particularly quickly.

Our offices cost a certain amount to run. The majority of these costs relate to staff salaries, accommodation expenses, equipment costs and professional insurance. We also incur operating expenses such as postage and telephones. These costs have to be spread over the number of working hours available to our legal advisers. As there is a limited number of working hours available, we have to charge each legal adviser's time at a rate that will cover their share of the office expenses, the firm's salaries and so on. Since we are a business we also need to make a profit.

In addition to our charges, VAT is payable at the normal rates. Disbursements, which we pay to others on your behalf, such as barristers' fees, court fees, experts' and medical reports, valuation fees, search fees and registration fees, are also payable.

Fixed Fees or Variable Fees?
We can charge either on the basis of a fixed fee or a variable fee. Fixed fees can be quoted in certain types of cases where it is possible to estimate the normal amount of work required in a standard case, so the figure can be quoted with certainty from the onset.

Fixed Fees are most commonly quoted in relation to domestic property transactions, some commercial property transactions and drawing up wills.

However with a large proportion of matters brought to us by clients it is not possible to assess with any accuracy, at the outset or even at a later stage, the amount of time needed to be spent to bring the matter to a conclusion. For example, in litigation it will not be known how far the opposition will wish to press their case, whether there is a possibility of early settlement or whether new issues will be raised by the opponent. Similarly, in commercial transactions the willingness of other parties to agree to terms or satisfactorily answer questions will not be known and problems may also occur as the transactions progress.

Variable fees are therefore based upon the actual time spent on the matter.

As a matter progresses, the amount of time spent on each stage of proceedings is recorded on our computer by the legal adviser. The time is recorded in blocks of units and each unit represents six minutes' worth of chargeable time.

Each legal adviser has a set rate per unit and the level of that rate is determined by each adviser's experience and status. Obviously the rate per unit for a senior partner will be more than the rate for a less experienced executive. The chargeable rates for any legal advisers who might be involved in your case will be notified to you in writing at the outset.

  • Time Element
  • Units used when calculating time spent on matters
  • Units will be calculated on the following basis:-
  • Letters Out: Up to one page length Includes perusal of incoming letter of similar length = 1 Unit
  • Over one page - per half page = 1 Unit
  • Letters In: Included in letters out, if under one page
  • For each additional page or part page = 1 Unit
  • Telephone Calls: For each six minutes or part = 1 Unit
  • Meetings: For each six minutes or part = 1 Unit Minimum of 2 units per meeting
  • Preparation: Includes drafting, consideration, research - For each six minutes or part = 1 Unit
  • Please note that chargeable unit rates are reviewed on 1st April of each year and will come into immediate operation.
  • Costs in Litigation matters

You should always bear in mind that at the conclusion of the matter and in the event that you are successful it may be that you are entitled to the payment of your costs by some other party. However it is rare for the system of 'taxation of costs' as it is known, to result in the other party having to pay the full amount of your costs. In this case you will be responsible to us for the difference between the actual cost incurred and the taxed costs payable by the other party. If any sum ordered against the other party is not recovered in full or in part, you will also be responsible for the shortfall in the amount recovered. This can be quite a complex subject and if further explanation is required, please do not hesitate to discuss this with us. Finally, you should remember that in the event of your action being unsuccessful the court may direct that you must pay the costs of the other party. This is in addition to your responsibility to pay your own costs.

Conditional Fees
In certain claims such as personal injury and insolvency, it may be possible to negotiate fees that are conditional upon the final result of the case. Conditional fees are only applicable if a conditional fee agreement has been signed in advance.

Payment Terms
If it is anticipated that your matter will be concluded in a short time we will normally issue our bill when the work is finished.

In matters that have a longer duration, we generally render interim bills as the case progresses as this helps clients to plan cashflow and avoids a large outlay on conclusion. In certain circumstances it may be preferable to make regular weekly or monthly payments to us so that by the time the matter is concluded the costs involved have been covered by the instalments paid.

Similarly if we have to pay out disbursements to third parties during the course of a matter, we normally ask for these payments to be refunded at the time they are incurred.

Frequently, we have to ask a client to let us have a payment on account of the costs to be incurred at the commencement of a matter.

Unless otherwise agreed in writing, all bills should be settled within 30 days of the bill being rendered. Interest on any amount owing using either the same rate as the Official Rate for judgment debts or the rate under The Late Payment of Commercial Debts (Interest) Act 1998, whichever is the greater amount, will be charged on bills that are not paid in full within 30 days.

In cases where we are holding money on your behalf it is our normal practice to deduct our charges from that money and account to you for any balance.

If for any reason a matter is not completed then we charge on the basis of the proportion of the work actually carried out to date. If any other work is requested other than that upon which we were originally instructed, this will be separately charged.

We can accept payment of our bills and any disbursements incurred on your behalf by Bank Transfer, Direct Credit, cheque or bankers draft.