E-Signed And Delivered: Statute Bills And Compliance With The Solicitors Act ' Elias v Wallace LLP [2022] EWHC 2574 (SCCO)

• Published date: 14 October 2022
• Subject Matter: Litigation, Mediation & Arbitration, Compliance, Arbitration & Dispute Resolution, Trials & Appeals & Compensation
• Law Firm: Gatehouse Chambers
• Author: Mr Martyn Griffiths

The number of solicitor and own client assessments has ballooned in recent times. This in turn has led to more and more arguments over whether solicitors' invoices comply with the Solicitors Act 1974 ("the Act") and obtain the hallowed status of being statute bills. Elias v Wallace LLP was a case concerning some of the technical requirements of a statute bill.

The Claimant brought Part 8 proceedings under s.68 of the Act seeking an order that the Defendant firm deliver a statute bill. Delivery of such a bill would start time running for an assessment under s.70 of the Act. The Defendant's answer to that claim was that the Claimant had already had delivery of a compliant bill and was therefore not entitled to another. The broader context of the claim was that if the Defendant was right and the invoices that it had produced were a statute bill, the Claimant would be out of time to have the Defendant's fees assessed unless he could show special circumstances.

Senior Costs Judge Gordon-Saker concluded that the Defendant was correct and ordered that the Part 8 claim be dismissed. He reserved his judgment because the claim concerned novel points relating to the requirements that a statute bill be delivered and signed in accordance with the Act.¹

Delivery

The requirements of the Act relating to delivery are set out in s.69(2C-2D):

(2C) A bill is delivered in accordance with this subsection if-
.
(c) it is delivered to that party-
(i) by means of an electronic communications network, or
(ii) by other means but in a form that nevertheless requires the use of apparatus by the recipient to render it intelligible, and that party has indicated to the person making the delivery his willingness to accept delivery of a bill sent in the form and manner used.
(2D) An indication to any person for the purposes of subsection (2C)(c)-
(a) must state the address to be used and must be accompanied by such other information as that person requires for the making of the delivery;
(b) may be modified or withdrawn at any time by a notice given to that person.

It was agreed that the invoices had been received by the client by email, however he argued that he had not indicated that he was willing to have bills delivered in this way.

The Defendant relied on two points: (i) the terms of its retainer and (ii) the Claimant's general conduct of his relationship with his solicitors. The clause in the Claimant's terms of business stated:

You [the client] agree that we may serve formal...