From 1 April 2007, the judicial expenses recoverable by
solicitors in actions raised in the Court of Session and the
Sheriff Courts will be increased by statutory instrument. It seems
that the effect of the legislation will be an uplift on fees of
approximately 4%.
In addition to this general uplift in fees, the legislation
makes certain changes to the sorts of work for which agents can
charge. These are as follows:
Court of Session
Where a hearing (known as a 'commission') has been fixed for
recovery of documents, both parties will now be entitled to a fee
for preparing for that hearing.
Similarly, in personal injuries actions, both parties will now
be entitled to a fee for the preparation or consideration of any
'specification of documents', the instrument used by parties to set
out in detail the documents that they want produced at any
hearing.
Finally, where a legal debate or striking out hearing has been
fixed and the court has ordained parties to set out in writing the
basis of their argument, fees in respect of these 'notes of
argument' shall now be recoverable.
Sheriff Court
Where an action settles before the expiry of the period of time
allowed for adjustment of the written pleadings, agents' fees for
work done in connection with the drafting of those pleadings will
be restricted.
This 'restricted adjustment fee' previously applied to cases
which settled prior to their first procedural hearing (known as the
'options hearing') which takes place two weeks after the expiry of
the adjustment period. So, where settlement is effected at any
stage after the adjustment period ends, agents will be entitled to
the full adjustment fee.
The new legislation also clarifies that the fee chargeable for
extra judicial settlement does not include fees for any written
motions that may be necessary to dispose of the action. Fees for
such motions are separately recoverable.
We shall be monitoring developments in any judicial accounts
that are submitted.
Contributed by Chris Dearie