THE IMPORTANCE OF SOLICITORS’ ESTIMATES IN RELATION TO COSTS: SOME EXAMPLES WHERE PROBLEMS HAVE OCCURRED (WITH A FINAL PLUG FOR THE WEBINAR ON THE 19th MARCH)

The recent short series on this site about the Ombudsman and estimates of costs highlighted the issues that can occur when there are disputes over costs and the original figures given by the solicitor.  However the Ombudsman is not the only source of concern for litigators. There can be major consequences on assessment.  Here is a review of four of the posts on this topic.

“It is hard to imagine that Ms Forster would have had nothing to say if warned in September 2010 that costs already exceeded £2 million, and had been told in December 2010 that costs by the start of the trial might exceed £5 million, with the 100% mark up.  These figures fall to be compared with an initial estimate of costs of £700,000… The answer for RPC cannot be that they acted on a “no win no fee” CFA because the CFA expressly requires RPC to give Ms Forster the best information possible about the likely costs of her claim, and to advise her of any circumstances affecting the amount of costs to be incurred, the degree of risk involved or the cost-effectiveness of continuing the case.  The staggeringly high level of costs, as compared with the value of the claims, self-evidently impacted the cost-effectiveness of the case.” (Mr Justice Fancourt in Forster v Reynolds Porter Chamberlain LLP [2023] EWHC 1150 (Ch))

WEBINAR ON INFORMING THE CLIENT ABOUT THE COSTS OF LITIGATION: 19th MARCH 2026

Details of the webinar can be found here.

DOCUMENTS SUPPLIED WITH THE WEBINAR

In preparing the webinar I have  have produced a series of Checklists and draft letters.

• A booklet with 10 checklists for the lawyer to help ensure that they are providing information throughout the case.
• A checklist on the information to be provided and obtained upon initial instructions.
• A draft costs information letter.
• A costs update letter.
• A checklist to be given to the client.

What the webinar covers

This practical webinar will address:

• How the Legal Ombudsman is approaching costs complaints — and why firms are losing them
• Key Ombudsman decisions where firms have been ordered to repay fees or pay compensation
• Current guidance issued by the Legal Ombudsman
• The duties under the Solicitors Code of Conduct
• Why the duty to inform clients about costs is continuing, not a one-off obligation
• Particular risks that arise when acting under Conditional Fee Agreements (CFAs)
• Cases in which inadequate or misleading estimates have led to adverse findings against solicitors
• Why poor estimates can undermine recovery oninter partes assessments
• How to avoid complaints and adverse findings: retainers, letters of advice, and a practical compliance checklist
• Advising a client who complains about costs — should the complaint be taken to the Ombudsman or pursued under the Solicitors Act?

RELEVANT POSTS ON SOLICITORS ESTIMATES AND DISPUTES IN THE COURTS

1. COST BITES 235: HOW IMPORTANT ARE ESTIMATES WHEN DETERMINING SOLICITOR AND OWN CLIENT COSTS?

Core issue: Client disputes bill based on estimate
Summary:

• Examines how far an initial estimate constrains what a solicitor can recover from their own client.

• The court emphasises that estimates are highly relevant but not determinative.

• Where costs greatly exceed estimates without adequate warning, recovery may be reduced.

• Key takeaway: failure to update costs estimates is central in client challenges.

2. COST BITES 154: SOLICITOR’S COSTS AND ESTIMATES

Core issue: Escalation beyond estimate challenged by client
Summary:

• A stark example of costs far exceeding the original estimate.

• The client challenged the bill; the court scrutinised reasonableness and proportionality.

• Reinforces that estimates create expectations, and significant departures require justification.

• Useful authority for arguing unreasonable overcharging in own-client assessments.

3. COST BITES 94: SOLICITOR AND OWN CLIENT COSTS – BUDGETING & DUTY TO WARN

Core issue: Client disputes liability for costs exceeding budget
Summary:

• Focus on costs exceeding the budget and sums recovered inter partes.

• Court stresses the solicitor’s duty to warn clearly when costs are likely to exceed recoverable amounts.

• If not, the solicitor may struggle to recover the shortfall from the client.

• Important in disputes where clients say: “I didn’t agree to pay the excess.”

4. COST BITES 80: DUTY TO INFORM CLIENT OF HIGH COSTS (INCLUDING EXPERTS)

Core issue: Client disputes costs due to lack of information
Summary:

• Highlights the obligation to keep the client informed of mounting costs, especially expert fees.

• Failure to do so can undermine recovery on a solicitor–client basis.

• Strong support for arguments that **inadequate