Court limits costs assessments for ATE
The Court of Appeal has ruled against clients using Solicitors Act costs assessments to investigate ATE commissions in a decision that clarifies legal practices around solicitor-client costs disputes. In Turner v Coupland Cavendish Ltd, the Court unanimously overturned a previous ruling, emphasising that costs of resolving such disputes "far outweigh" any potential benefits
The judgment defines the distinction between assessing a solicitor's bill and managing accounts, confirming the limitations placed on costs judges. It also stated that while Part 18 inquiries remain permissible, they cannot devolve into fishing expeditions for separate claims, and noted that commissions on ATE premiums are outside the Costs Judge's jurisdiction. Nick McDonnell, Director at Kain Knight, highlighted that practitioners should now recognise that questions regarding commission do not fall within the Costs Judge's responsibilities when assessing bills. The ruling, however, does not affect a solicitor's fiduciary obligations, reaffirming that such duties do not expand statutory jurisdiction. Kain Knight, involved in multiple notable cases, represented the successful party in this landmark ruling
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