Blog
14 Maternity Trusts to be Scrutinised as Part of National Investigation
Kirsty Allen
Last month, The Court of Appeal delivered an important costs judgement which has the potential to significantly impact how beneficiaries can challenge solicitors’ fees in contentious trusts, probate, private wealth and estate proceedings.
In the long-awaited decision of the Court of Appeal in Kenig v Thomson Snell & Passmore LLP [2024] EWCA Civ 15, the Court of Appeal stated that:
- Although the starting point is that an assessment under section 71(3) is an assessment as between solicitor and client, I accept that the ultimate interest to be protected on an assessment under section 71(3) is that of the estate and/or the beneficiaries.
- Second, I consider it to be material that section 71(3)(b) makes express provision permitting an order that payments be made "to or by the applicant, to or by the solicitor, or to or by the executor, administrator or trustee", which underscores the broader nature of the enquiry under section 71(3) when compared with an assessment under section 70 or section 71(1).
- Third, it seems appropriate that separate consideration should be given to the position of the beneficiary and the estate in circumstances where the executor/trustee carries no risk because of their ability to pay the solicitor out of the trust property.
- Fourth, the decisions in In re Brown and Hazard v Lane both contemplated and allowed the beneficiary to challenge the bill even though an executor had approved it.
The implications of this ruling are clear. Beneficiaries can now seek to reduce the fees of solicitors that are to be paid out of estate funds, even where those fees have been approved by the executors.
This opportunity exists even if the other beneficiaries do not want to seek a reduction.
This decision gives further encouragement to beneficiaries who think they may have been overcharged by their solicitor to contest fees. It also undoubtedly adds more weight to the view that the Solicitors Act needs an overhaul to bring it kicking and screaming into the 21st century!
further information
If you have any questions or concerns about the topics raised in this blog, please contact Michael Tyler.
about the author
Michael Tyler is a Partner and the Head of the Costs Team with over 18 years’ experience in the field of costs law. He is the ‘go to individual’ when it comes to Part 36 offers and negotiation strategy of high value costs matters and insurance coverage.
We welcome views and opinions about the issues raised in this blog. Should you require specific advice in relation to personal circumstances, please use the form on the contact page.
You may also be interested in:
Blog
Permission to Visit - Goldilocks and the Three Bank Statements
Robert Houchill
Blog
The rise of the cryptoassets in financial remedies
Connie Atkinson
Share insightLinkedIn X Facebook Email to a friend Print