Legal Ombudsman Issues Guidance on Lawyers Disclosing Ongoing Costs to Clients
Legal Ombudsman Issues Guidance on Lawyers’ Ongoing Costs
In a bid to reduce the number of complaints related to lawyers’ bills, the Legal Ombudsman has released refreshed guidance that emphasizes the importance of transparency and communication when it comes to costs.
According to the new guidance, complaints about lawyers’ bills account for one in 10 complaints referred to the Legal Ombudsman’s Office. Dissatisfaction with costs also plays a significant role in complaints about lawyers’ communication, highlighting the need for clear and accurate information about fees.
Recent court cases involving disputes over success fees and informed consent have prompted the Legal Ombudsman to reiterate the importance of setting boundaries and keeping clients informed about costs.
The guidance outlines three key principles that lawyers should follow: clients should never be surprised by their bill, lawyers should clearly explain what they are charging for, and detailed records of cost information should be maintained.
One common area of contention in complaints is managing cost changes. The guidance stresses that lawyers must keep clients updated on costs throughout the case and consult them on how to manage potential cost increases or changes in service options.
In cases where costs change, lawyers are expected to clearly explain the reasons for the change, provide estimated or actual costs for new services, and seek instructions from the client on how to proceed.
The guidance also addresses the different charging structures used by lawyers, such as fixed fees, hourly rates, and damages-based agreements. Lawyers are urged to explain the charging structure to clients in a clear and understandable manner.
Overall, the Legal Ombudsman’s guidance aims to ensure that clients have a clear understanding of the costs associated with legal services and are not caught off guard by unexpected bills. By following these principles, lawyers can avoid complaints being upheld by the Ombudsman.
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