The debate around reforming how solicitor-client costs disputes are handled has been running for some time. But recent admissions from the Legal Ombudsman (LeO) have clarified one thing above all else: for law firms and clients navigating disputes over legal fees right now, the existing court-based framework remains firmly in place – and is likely to do so for the foreseeable future.

Understanding what the current proposals involve, why LeO has distanced itself from an immediate role, and what this means in practice is increasingly important for any firm dealing with fee disputes or acting for clients who are challenging a solicitor’s bill.

What is the CJC Proposing?

Earlier this year, the Civil Justice Council published an interim report examining potential reforms to Part III of the Solicitors Act 1974 – the primary legislation that governs how disputes between solicitors and their clients over fees are resolved.

One of the most significant proposals in that report was that lower-value solicitor-client costs disputes – those valued at up to £50,000 – could potentially be redirected away from the courts and handled instead by the Legal Ombudsman.

The rationale behind the proposal is understandable. The current process involves technical statutory requirements, strict time limits, and procedural rules around statute bills that many clients find difficult to navigate without specialist advice. The CJC’s view is that a simpler, more accessible route could improve outcomes for consumers whilst easing pressure on the courts.

In principle, that may be a reasonable aim. In practice, however, the organisation proposed as the alternative forum has significant reservations about its ability to take on that role.

LeO Has Made its Position Clear

The Legal Ombudsman’s leadership has been candid about the challenges involved. Chief Executive Phil Cain has confirmed publicly that whilst LeO would engage with discussions about future reform, the organisation is not currently set up to take on solicitor-client costs disputes at the scale or complexity that the CJC’s proposal would involve.

Three concerns have been highlighted in particular:

• Capacity – LeO already faces a significant backlog of complaints and has acknowledged ongoing challenges in managing investigation volumes, despite continued investment in its operations.
• Funding – Absorbing a meaningful new category of specialist disputes would require substantial additional resource that is not currently in place.
• Expertise – Solicitor-client costs disputes frequently involve complex legal questions that go beyond the scope of ordinary service complaints. Resolving them properly requires specialist knowledge that LeO does not currently hold

These are not minor reservations. They reflect a substantive gap between what is being proposed and what LeO is currently equipped to deliver.

Why Solicitor-Client Costs Disputes Are Not Simply Service Complaints

One of the recurring misconceptions in discussions about this area of law is that disputes over legal fees are essentially a subset of general client complaints about poor service. In practice, they are often considerably more complex than that.

At Greener Costs, we regularly advise both law firms and individual clients on matters involving solicitor-client costs. The issues that commonly arise go well beyond whether a client feels their solicitor communicated well or responded promptly. They include:

• Whether a bill constitutes a valid statute bill under the Solicitors Act 1974
• Whether the client’s right to seek assessment has been lost due to the passage of time
• Whether the retainer underlying the fee agreement is legally compliant
• Whether particular items of costs were properly incurred and justified on the facts
• Whether relevant time limits for bringing an assessment application have been met

Each of these questions requires careful consideration of legislation, procedural rules, and case law. Many solicitor-client costs disputes involve substantive legal argument before any assessment of the underlying fees even begins.

This is precisely why specialist costs lawyers and costs draftsmen continue to play such a central role in resolving these matters – whether acting for a firm seeking to recover outstanding fees or a client seeking to challenge a bill.

The Solicitors Act 1974 Framework Remains in Force

Whatever the outcome of the current reform debate, the existing statutory framework continues to apply. The Solicitors Act 1974 governs how and when clients can seek an assessment of a solicitor’s bill, the circumstances in which that right can be exercised or lost, and the procedural steps involved.

For law firms, this means the key principles remain unchanged. Statute bills must satisfy specific requirements. Time limits apply. Retainer compliance matters. And the court retains jurisdiction over disputes that cannot be resolved by agreement.

For clients, it means that if you believe your solicitor has overcharged or that their bill is not properly constituted, the route to challenging it remains through the court process – and obtaining specialist advice at an early stage is essential.

The Risk of Waiting for Reform That Has No Timetable

One practical consequence of the current uncertainty is that some firms and clients may be tempted to delay action in the hope that a simpler route will become available. That approach carries real risk.

Time limits in this area are not generous. In many cases, the right to seek a detailed assessment can be lost if an application is not made within the relevant period. Retainer issues that are not identified early can affect recovery prospects. And disputes that might otherwise be resolved efficiently tend to become more complicated – and more costly – the longer they are left unaddressed.

The honest position is that reform may come eventually, but there is no current timeline. LeO has signalled that it would need significant additional funding, specialist recruitment, and new operational processes before it could take on this work. Legislative change would also be required. None of that is imminent.

How Greener Costs Can Help

At Greener Costs, our team of qualified costs lawyers and costs draftsmen advise on all aspects of solicitor-client costs disputes. Whether you are a law firm seeking to recover outstanding fees or a client looking to understand your rights in relation to a bill you have received, we can provide clear, practical guidance on the options available to you.

Our work in this area includes:

• Reviewing solicitors’ bills and advising on their validity
• Identifying potential issues with retainer compliance
• Advising on time limits and assessment rights under the Solicitors Act 1974
• Preparing for and supporting detailed assessment proceedings
• Negotiating resolution of costs disputes without the need for formal court proceedings

We provide transparent, upfront pricing on all instructions and a straightforward process from initial contact through to resolution.

Get in touch with our team today on 01204263047 or email info@greenercosts.co.uk to discuss your requirements.

Frequently Asked Questions

Can a client challenge their solicitor’s bill? Yes. Under the Solicitors Act 1974, clients have the right to apply to the court for a detailed assessment of their solicitor’s bill. However, time limits apply, and the right to seek assessment can be lost in certain circumstances. Early specialist advice is strongly recommended.

Will the Legal Ombudsman take over solicitor-client costs disputes? Not in the near future. Whilst the Civil Justice Council has proposed that lower-value disputes could be redirected to LeO, the Legal Ombudsman itself has confirmed it is not currently equipped to handle these cases. The court-based process under the Solicitors Act 1974 remains the applicable route.

What is the difference between a service complaint and a costs dispute? A service complaint relates to the quality of the legal service provided. A solicitor-client costs dispute concerns the level and validity of the fees charged. Whilst they can overlap, costs disputes often involve complex technical issues regarding the bill’s legal validity, retainer compliance, and assessment rights that go well beyond a standard service complaint.

How long do I have to challenge a solicitor’s bill? Time limits vary depending on the circumstances. In many cases, an application for detailed assessment must be made within one month of the bill being delivered if the client has not paid, or within 12 months in other circumstances. Specialist advice should be sought without delay.