LWN

Law Firms Warned Over Costs Padding as Judges Enforce 25% Cap

Judge Issues Warning to Personal Injury Firms Over ‘Costs Padding’ Practices

Personal injury firms have been put on notice that any attempts to inflate fees to reach the 25% cap will not be tolerated and could result in a regulatory probe. District Judge Lumb made the warning in a recent ruling, citing concerns over the proposed deductions in a case involving north west firm Express Solicitors.

Background of the Case

The case involved a costs bill presented by Express Solicitors following the settlement of a personal injury claim for £10,000. The firm claimed that £13,316 of profit costs had been incurred, with recorded time of 73.1 hours by 18 fee earners engaged on the matter. However, Judge Lumb was skeptical of the costs and ordered an assessment, noting that the 100% success fee claimed by the firm was “obviously too high”.

Read Also: Shocking Confession: SRA Chief Admits Complaints System Chaos

The claimant’s litigation friend had given a statement to the court, but Judge Lumb found that it was “clearly a template statement prepared by the solicitors and not in her own words”. The judge also found that another witness statement, prepared by a trainee solicitor, was not in the …

Shocking Confession: SRA Chief Admits Complaints System Chaos

The head of the Solicitors Regulation Authority (SRA) has expressed concerns about the current complaints system, admitting that it can be confusing for clients. Sarah Rapson, who took up the role in November 2025, revealed her worries during an appearance before the Commons justice select committee.

Complaints System Blurs Lines

Rapson explained that while the SRA handles complaints about conduct, the legal ombudsman deals with service-related issues. However, in practice, the lines between the two become blurred. Both organizations have reported a significant increase in complaints in recent months, possibly linked to the growing use of generative AI.

A Single Complaints Handler?

Rapson hinted at the possibility of introducing a single complaints handler, stating that she is open to discussing this issue with relevant stakeholders. She emphasized that the current system requires a “reset” and urged the sector to engage in a conversation about whether it needs to change.

The Current State of Affairs

Rapson noted that the SRA is already acting as a “quasi-ombudsman” but lacks the same powers as the legal ombudsman. She emphasized that this can lead to confusion, particularly for members of the public who …

Solicitor’s Error Leaves Loan Security in Jeopardy

In a landmark ruling, the High Court has declared that a loan security charge was rendered void due to an extraordinary error committed by a solicitor. The court’s decision highlights the importance of proper procedure and communication in legal transactions.

Background

The case involved Myranna Boult, who had taken out a bridging loan with her house as security. However, unbeknownst to Boult, an unidentified individual from Priority Law, the solicitors for the lender, amended the legal charge to include her neighbouring field without obtaining her consent or that of her client.

The Error

The solicitor’s error was described by Mr Justice Michael Green as “somewhat extraordinary” and a deliberate alteration to the signed legal charge. The court heard that the solicitor had added the field to the deed without checking with Boult or their client, and then registered it against the field’s title number.

The Ruling

Mr Justice Green ruled that the error was not an “innocent mistake” or “administrative error,” but rather a material alteration that rendered the whole charge void. He concluded that the solicitor had deliberately added the new property to the deed after it had been signed by Boult …

Probate Application Blocking Fee Sparks Controversy: The High Cost of Inheritance Disputes

The administration of an estate can be a contentious issue, especially when it comes to disputes over the distribution of assets or the terms of a will. According to recent data obtained by TWM Solicitors from the Ministry of Justice, there has been a 12% rise in the number of people paying £3 to block probate applications for six months. This trend is not unique, as official figures show an increase in the number of probate cases open for at least six months.

The Rise of Caveat Applications

A caveat application is a process by which someone disputing a will can challenge a probate application by paying £3. This payment allows them to stop all applications for probate on the estate from being granted for six months. The caveat can be extended for another six months, giving the applicant more time to resolve their dispute.

• The number of caveat applications jumped by 12% to 11,589 in the 12 months leading up to July 2025.

Why the Rise?

The rise in caveat applications is attributed to several factors, including rising property prices and more complex family dynamics. According to Stuart Downey, a partner at TWM Solicitors, these factors increase the likelihood …