Complaints | Costs in matrimonial proceedings

Frequently, we see complaints arising in relation to the costs of matrimonial proceedings. A typical case is set out below.

Mr X instructed Friendly Co to deal with his divorce and the associated financial proceedings. In their client care letter, Friendly Co gave an estimate of £500 plus VAT for the divorce and £6,000 plus VAT and disbursements for financial dispute resolution.

From the outset, Mrs X's conduct was intended to provoke Mr X and to raise costs. Matters escalated to a point where Friendly Co had to apply for an Occupation Order. However, they failed to revisit their initial costs estimate. Ultimately, Friendly Co rendered a final invoice amounting to just under £11,000 plus VAT and disbursements.

Upon receipt of the invoice, Mr X telephoned Friendly Co and told the receptionist that he wanted to make a complaint. She put him through to the voicemail of the fee-earner who had been dealing with the matter. The relevant fee-earner panicked and failed to respond to the message. Ultimately, Mr X wrote to the managing partner, complaining about inadequate costs information and poor complaints handling.

In handling this complaint, the managing partner will need to bear in mind that the SRA Code of Conduct 2011 requires him to deal with the matter, ''¦promptly, fairly, openly and effectively.' (Outcome 1.11)

The managing partner ought to telephone Mr X immediately, to ensure that he has understood the essence of the complaint correctly and to get a feel for what Mr X would consider to be a satisfactory resolution. He then needs to investigate. While Law Society guidance is that 21 days is usually a reasonable timescale for investigating a complaint and reverting to the client, complainants are often more receptive if the response is quicker. Typically, complaints of this nature can generally be resolved by a timely apology coupled with a reduction in fees. Where a complaint also gives rise to a notifiable claim or circumstance, the firm's insurers need to be consulted before any apology is given.. Being amenable to a reasonable proposal of instalment payments can also sometimes make the difference between a complaint being resolved and the client going to LeO.

In dealing with a complaint where the firm is clearly at fault, damage limitation is key. An objective, commercial approach needs to be taken, factoring in: the management time that will be expended; the potential for adverse publicity and chargeable complaint costs, if the matter escalates to LeO.

Mitigate the risk:

1. Be specific about exactly which procedural steps are included in an initial costs estimate and what is excluded.

2. Review costs estimates regularly '“ have a prompt in your case management system.

3. Update the costs estimate when the client instructs you to go beyond the original retainer.

4. Ensure that all staff are familiar with the firm's complaints handling policy, which ought to provide for complaints being referred to a senior person, for example, the relevant head of department, in the first instance.

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