Client Terms and Conditions
1. Application of Terms
Subject to any variations specifically agreed in writing when accepting your instructions these terms shall apply to all advice given and work undertaken by the solicitors and staff of Mullbar Solicitors to or for each of our clients (‘you’).
In these terms of business ‘we’ or ‘our’ or ‘us’ or ‘the firm’ refers to Mullbar Solicitors (Mullbar) a firm authorised and regulated by the Solicitors Regulation Authority under number 620624 having its trading address at Weatherhill House, New South Quarter, 23 Whitestone Way, CR0 4WF.
Any business conducted with us is solely with Mullbar Solicitors and the firm has sole legal liability for the work done for you and for any act or omission in the course of that work. If a principal, employee, associate, or consultant signs in his or her own name any letter or other document in the course of carrying out that work it does not mean he or she is assuming any personal legal liability for that letter or document.
2. Our Service to You
We will exercise due skill, care and diligence in carrying out legal work in accordance with your instructions. In performing our services, we shall use reasonable care to:
• Represent your interests, and keep your business confidential;
• Explain to you the legal work which may be required and the prospects of a successful outcome;
• Explain any likely degree of financial risk in relation to legal costs which you will be taking on;
• Inform you regularly of progress or, if there is none, let you know when you are likely to hear from us;
• Deal promptly with your queries.
Our normal opening hours are from 9.00am to 5.00pm but individual fee-earners may advise you directly of their availability and how to contact them outside these hours.
3. Responsibilities
3.1. Advice on commercial/financial acumen, and tax advice
Our role is to provide legal advice and not to provide advice on the commercial or financial acumen of any matter, or advice on tax matters. If you require tax advice, we may be able to identify a source of assistance for you.
3.2. Property issues
Where we are acting for you in relation to a property transaction, it will not be our responsibility to carry out a physical inspection of the property. It is your responsibility to inform us of any discrepancies between the documents/plans relating to the transaction and the situation on the ground. We shall not advise you on the valuation of the property or the suitability of the mortgage or any other financial arrangement. We shall not advise generally on environmental liabilities, and we shall assume, unless you tell us to the contrary, that you are making your own arrangements for any appropriate environmental surveyor investigation.
3.3. Your responsibilities as a client
You are responsible for:
• Providing us with clear, timely and accurate instructions;
• Providing all documentation required in a timely manner;
• Safeguarding any documents which are likely to be required for disclosure;
• Paying our fees and expenses in accordance with these Terms and the engagement letter;
• Provide us with all necessary information to enable us to comply with the Money Laundering Regulations.
4. imitation of Liability
4.1. Liability to persons who are not the client of the Mullbar Solicitors
Subject to clause 4.8 we shall have no liability to any parties except you and any third parties to whom our advice is expressly addressed.
4.2. Liability limited to £2 million
4.2.1. Subject to clause 4.8, our liability for losses arising out of, or in connection with, our retainer (including legal costs you incur in pursuing recovery of the losses, and including interest) shall be limited to the sum of £2 million in respect of any claim against us.
4.2.2. In defining what a claim is for the purposes of this clause, all claims against us arising from one act or omission, one series of related acts or omissions, the same act or omission in a series of related matters or transactions, similar acts or omissions in a series of related matters or transactions, and all claims against us arising from one matter or transaction, shall be regarded as one claim.
4.3. Proportionate liability
Subject to clause 4.8, if we are jointly, or jointly and severally, liable to you with any other party we shall only be liable to pay you the proportion of your losses which is found to be fair and reasonably due to our fault. We shall not be liable to pay you the proportion, which is fairly and reasonable due to the fault of another party.
4.4. Effect of limitation or exclusion of liability you agree with another person
We could be affected by any limitation or exclusion of liability, which you agree with another of your advisers or any other third party in connection with a matter on which we are acting for you. This is because such a limitation or exclusion of liability might also operate to limit the amount that we could recover from that other person, (for example by way of contribution or restrict the amount of damages that you might recover from them directly). Subject to clause 4.8, you agree that we shall not be liable to you for any increased amount thereby payable by us, or for an amount which we would have been entitled to recover from another of your advisers or other third party by way of indemnity, contribution or otherwise, but are unable to recover because of that limitation or exclusion of liability which you have agreed with third parties.
4.5. Making a claim against another person who is or may be liable
Subject to clause 4.8, if there is another adviser or person who is liable (or potentially liable) to you in respect of the same loss as you claim from us, then you will at our request join that person in any proceedings brought against us as soon as reasonably practicable following our request. This is subject to any legal prohibition against your joining them in that way.
4.6. Complying with our obligations under the money laundering legislation
Subject to clause 4.8 we shall not be liable for any loss arising from or connected with our compliance with any statutory obligation, which we may have, or reasonable belief we may have, to report matters to the relevant authorities under the provisions of the money laundering legislation.
4.7. Qualification to limitation of liability
Nothing in these Terms excludes or restricts liability for:
4.7.1. Death or personal injury cause by breach of duty;
4.7.2. Losses caused by the fraud, dishonesty, wilful default or reckless disregard of professional obligations committed by any principal or member of staff within the course of practice or from liabilities which cannot be limited or excluded by law or by rules of professional conduct in force from time to time;
4.7.3. Losses caused when acting for you in a ‘contentious business agreement’ within the meaning of section 87 of the Solicitors Act 1974.
4.8. Reasonableness of limit
We believe the limitations on our liability we have set out are reasonable having regard to the availability and cost of professional indemnity insurance and possible changes in its availability and cost in the future but should you consider them inappropriate we invite you to discuss the limits with us and we will then investigate the options for you, including the option of providing further cover at additional cost.
5. Fee Structure
You will be notified by letter at the commencement of each matter that we undertake on your behalf the basis upon which we will charge you. There are four bases of charge, which may be referred to in our letter.
5.1. A fixed fee
This will either be a stated fixed amount or will be calculated by reference to a percentage of an ascertainable sum (for instance the sale price of a property). This fee is payable at the beginning of the matter or an agreed stage being reached. All conveyancing fixed fees are payable at completion of the transaction and prior to registration formalities unless otherwise agreed;
5.2. Time basis
Our charge will be calculated by reference to all time spent by individual fee- earners on the matter. This will include meeting you and others where appropriate, considering, preparing and working on papers, correspondence, making and receiving telephone calls, research, internal consultations and travelling. Such time is recorded and charged in six minutes units at the hourly rates applicable to the relevant individual. Where less than six minutes is taken on a matter, a full unit of six minutes will be charged. You will be notified by letter of the rates chargeable by fee-earners dealing with your matter. These rates are exclusive of VAT. Charging rates will be reviewed from time to time and you will be notified of any changes as soon as reasonably possible.
5.3. Standard Basis
This will be a fee, which is fair and reasonable in all the circumstances of the case as recognised by the relevant regulatory legislation or guidance. The main element in any such calculation is likely to be the amount of time spent by our professional staff in dealing with the matter. Other factors relevant to the calculation of a Standard Basis fee include but are not limited to: the complexity of the matter; the value of the assets involved; the degree of responsibility undertaken by us; the place where the work is performed; the investment in IT programs utilised; the level of office support services utilised; the urgency.
5.4. Agreed fee
A fee that cannot be varied upwards and is payable whether or not the work is completed.
Unless you are being charged on a fixed fee or agreed fee basis, any indication of fees is an estimate only (whether stated to be an estimate or quotation). We will endeavour to ensure that estimates are as accurate as possible. We will be entitled to charge for all time spent even if it transpires that our estimates understate the level of fees properly incurred in the matter. Any fixed fee or estimate will only apply to the work covered by your initial instructions and we reserve the right to vary the fees if the scope or nature of those instructions changes.
Unless expressly agreed otherwise, no work is undertaken on a contingent basis and with the exception of fixed fees our fees are payable in full whether or not the proposed matter is completed. We do not undertake work, which is publicly funded. Should it appear to us that any work that you may instruct us to undertake is eligible for public funding, we will advise you of this and the implications thereof.
If you have legal expenses insurance, it is your responsibility to advise us of this fact. Further, you should check whether your household insurance or any other policy provides cover for our fees and notify us if applicable. You may also have cover under a scheme relating to your employment. In all such instances where you advise us that you have cover from a third party, we shall consider the terms of the cover and advise you whether we are prepared to continue our retainer on the basis of third party cover. You may also have cover in respect of your liability to another party’s costs and you should check any insurance policy you may have for this should you be involved in a contentious matter. Should it be appropriate for you to take out such cover, you will be specifically advised of this.
We shall be entitled to make any additional charge for:
• Any telegraphic transfers at £30 per transaction;
• Photocopying (routine as well as exceptional);
• Scanning and faxing;
• Any ‘Faster Payment’ transaction at £10
We will also charge separately for sums spent or to be spent by us on your behalf (‘disbursements’) such as company and property search fees, land registry and court fees, the fees of counsel and experts, travel expenses, courier fees and computer search fees.
Unless agreed otherwise we will expect all disbursements to be paid in advance. At the outset of a matter, we will advise you of the disbursements that are likely to be incurred and their likely timescale. Should you fail to pay disbursements when requested, we shall be entitled to determine the retainer with immediate effect.
All fees and expenses are exclusive of VAT, which will be charged where applicable at the appropriate rate.
You will be responsible for the payment of all stamp duty and other taxes arising in respect of your transactions.
You are entitled to set an upper limit on the firm’s costs, which may be reached without further authority. Fees in excess of that limit may only be incurred with your specific further authority.
On all matters that are being charged upon a standard basis or time basis, we will, at intervals of no longer than every 6 months, update you as to the current costs position.
6. Fee Estimates
Unless you are being charged on a fixed fee or agreed fee basis, any indication of fees is an estimate only (whether stated to be an estimate or quotation). Whilst we endeavour to estimate fees as accurately as possible, the actual fees that are incurred are subject to factors outside our control and you should therefore treat any estimate as a guide only. We cannot guarantee that the final charge will not exceed the estimate.
7. Engagement Terms
We will send you written engagement terms specifying the scope of work and basis of charge (as well as other information relevant to your individual matter) and those engagement terms will specifically incorporate these Terms of Business. You will be asked to sign and return a copy of the engagement terms to confirm your agreement to the terms of our retainer. In the event of you instructing us to take any action or give any advice having received our written engagement terms but not having signed and returned the copy, you will be deemed by instructing us to have accepted our engagement terms and will be bound by them.
8. Delivery of Invoices and Payment of Fees and Interest on Unpaid Fees
Our invoices are payable on delivery. If email is the normal method of communication between us, sending an invoice by email will constitute valid delivery of that invoice. In the event of any invoice not being paid on delivery we shall be entitled not to undertake any further work on your behalf until the invoice is paid in full. If the invoice remains outstanding for 28 days we shall be then entitled to terminate the retainer in accordance with clause 17 and/or charge interest as specified below. In property or other asset purchases we usually ask you to provide us with cleared funds sufficient to pay all fees and other sums due to us prior to completion. In the event of monies being paid to the credit of your client account when there are outstanding fees or other sums due to us, you agree and authorise us to forthwith transfer funds equivalent to the amount of the debt due to us from your client account to the credit of our office account and thereby discharge your debt. If the funds held are less than the full amount of the debt, then you agree to us transferring to our office account the entirety of the funds on your client account in partial settlement of the debt.
We are entitled to deliver invoices from time to time for all work carried out to the date specified in the bill. Such bills are ‘statutory bills’ which we are entitled to sue upon in default of payment. The interval between bills will in most circumstances be between one and three months. An invoice will be sent at the conclusion of all matters.
In some circumstances, particularly litigation matters, we may request a payment on account of our fees, expenses and disbursements. If a payment is requested, we reserve the right not to act or continue acting for you until payment has been made.
All payments on account will be held in our Client Account, pending delivery of an invoice. In litigation matters we may give you notice, usually not less than 28 days before any hearing, requiring the estimated total costs of that hearing to be paid to us 14 days before the hearing. If we receive less than 28 days’ notification of the hearing, we may give you notice within 7 days of receiving the notification, requiring you to put us in funds for the estimated total costs of that hearing within 3 days or before the hearing if sooner. If the required payment is not paid we may immediately cease acting for you on that matter and any other matters with which we are then acting.
We will charge interest on any amount remaining overdue by 28 days or more. Failure to pay invoices in accordance with our terms of business is analogous to an unauthorised overdraft. Accordingly the rate of interest we will charge on overdue amounts is 15% per annum with interest compounded on each quarter date. We may at our absolute discretion discount the interest rate in individual cases and such discount will only apply if you receive written notification thereof.
Please note that Rule 17 of the SRA Accounts Rules 2018 provides that where money is held in our Client Account on behalf of a Client or Trust, we must within 14 days of sending our bill to the Client or paying party (or notifying them of the sum due) transfer sufficient monies to settle the bill from our Client Account to the firm’s Office Account. Accordingly you agree that where money is held in our client account on your behalf or on behalf of a trust, when we send a bill to you or the paying party for work that has been done we may transfer sufficient monies to settle the bill from our Client Account to the firm’s Office Account. The only circumstances in which we do not have to make such transfer is where the client has:
• Instructed us not to make the transfer, or
• Specifically told us that the funds are to be held for a purpose other than the payment of our account. Where a bill is disputed we remain obliged to transfer the monies subject to the condition that we will refund the Client if it is determined that the amount due is less than the sum claimed in the bill
Payment of our charges may be made by cheque, BACS money transfer, banker’s draft, credit or debit card (not American Express) but we cannot accept any payment in cash above £500 in respect of our fees or for any other purpose.
If you object to any bill you are entitled to apply to the court for an assessment of the bill under Part III of the Solicitors Act 1974.
9. Lien
Without prejudice to any other rights or remedies we may have we shall have a general and particular lien (a right to retain documents or other items) over any of your property coming into our possession or under our control as security for all amounts and liabilities of whatever sort due or becoming due to us from you. The lien may be enforced by sale by auction or private treaty of all or any part of your property in our possession.
If for any reason we permit you or any other person to have possession or use of any property subject to the above lien, it shall be held at all time subject to that lien and shall be returned to us immediately upon request.
10. Interest on money we hold on your behalf
We will hold any money we receive on your behalf in our client account. We will account to you for interest in accordance with Rules 22 and 23 of the SRA Accounts Rules 2018. A copy of our policy relating to the payment of interest can be provided on request. In certain circumstances we are required by law to provide information to HM Revenue & Customs in connection with interest paid to you on money we hold on your behalf.
11. Banking
We have no expertise in relation to fitness for purpose or solvency of any bank. We assume that any bank licensed to operate by the appropriate statutory authority in the jurisdiction in which it operates will be able to honour its obligations.
Accordingly, we will have no liability to you in the event of any bank to whom we pay money to on your behalf becoming insolvent or being unable to meet its obligations.