Common use of Basic Charges Clause in Contracts

Basic Charges. These are our charges for the legal work we do, based on our rate of £350.00 per hour. Letters and telephone calls are charged out on a time-recorded basis at 1/10th of the hourly rate. We will keep our hourly rate under review and notify you in writing of any increased rate. We will review the hourly rates (to take account of changes in our overhead costs) and notify you in writing of any increased rate. We will also advise you in writing of any change in the hourly rate if there is a change in the Litigator dealing with your claim. Interest & Payments By entering into this agreement, you agree that we may charge interest on our charges at a rate of 8%, with interest becoming chargeable at the time the charge is incurred. You agree to pay any cheques/monies received by you or by us from the Opponent, whether made payable to you or us, into a designated account of our determination. Out of the money, you agree to let us take the balance of our Basic Charges, Success Fee, insurance premium, any remaining Disbursements, interest and VAT. Unrecovered Basic Charges & Authority to Settle Costs Claim It is possible that there will be a shortfall between our basic charges and the sum we recover on your behalf from the Defendant if the claim is successful. On assessment the Court will not award you the recovery of any costs which it considers to be “solicitor/client” in nature, nor will it normally allow costs which it considers are not proportionate to the amount of damages in dispute nor those it considers unreasonably incurred. Furthermore, it is likely that the Court will award you costs in accordance with the “summary assessment guideline hourly rates” which are currently as follows: Grade A - £255.00 per hour, Grade B - £218.00 per hour, Grade C - £177.00 per hour and Grade D - £126.00 per hour and were previously as follows Grade A - £201.00 per hour, Grade B - £177.00 per hour, Grade C - £146.00 per hour and Grade D - £111.00 per hour All of these factors will mean that it is unlikely that you will recover our basic charges in full from the Defendant. You should note that a Court assessment of your recoverable legal costs can be expensive and place you at a risk of having to pay the Defendant’s costs of the assessment proceedings if you do not better an offer they make to settle your costs claim. In light of this, by entering into this agreement, you authorise Your Lawyers to settle your costs claim at a sum it considers to be reasonable without taking further instruction from you and understand that you are liable for any shortfall in our basic charges and those recovered charges from the Defendant in doing so. You specifically agree that Your Lawyers can agree settlement of your recovered charges in accordance with the above guidelines hourly rates. We agree to restrict any of our unrecovered basic charges inclusive of VAT and the unrecoverable success fee we charge on our fees (inclusive of VAT) to no more than 35% of your damages, provided that you fulfil your part of the agreement. It is recorded that you consent to paying the unrecovered basic charges and that to that extent, your rights under s 74(3) of the Solicitors Act 1974 are waived, as is your right to rely on the presumption relating to “unusual costs” in CPR rule 46.9(3)(c). Lien Our right to keep all papers, documents, money or other property held on your behalf until all money due to us is paid. A lien may be applied after this agreement ends unless another solicitor working for you undertakes to pay us what we are owed, including the Success Fee, if you win. Any Undertaking offered to preserve this lien must be in accordance with our terms of business.