Lawyer bill is the most outrageous I’ve ever seen
Legal costs expert urges probe into £2m invoice
Britain’s top legal costs expert has described sums charged by a blue chip law firm as the “worst over- billing” he has seen in his 35-year career.
Jim Diamond was hired by businessman Robert Kidd to analyse fees he was charged by Levy & McRae and the advocate they used in his case.
The firm and advocate Jonathan Brown have been reported by Kidd and his legal team to Scotland’s legal watchdog for “outrageous and unprofessional” practices.
In his report, Diamond claims: “I can say without hesitation this is the worst case I have encountered for unjustified and over-billing and/or lack of legal costs information and/or legal costs control.
“Frankly, some of them are so outrageous and unprofessional they should be immediately reported and investigated by the relevant authority as a matter of urgency.”
The case has been reported to the Scottish Legal Complaints Commission (SLCC) and the Faculty of Advocates.
We told last month how Levy & McRae, based in Glasgow, are being sued for £ 3million by Kidd over claims fees they charged him were “illegal”.
Diamond’s report states the basic costs charged by the firm for the case were around £2.15million but it is understood total charges ended up more than double that when “success fees” were factored in.
Diamond states: “No work in progress reports/ time breakdown/accounts ledgers have ever been submitted ( by partner Graham Craik or Levy & McRae) to Kidd or his new legal team dealing with these legal costs dispute. Despite base costs of £ 2.15mil lion and repeated requests, the client [Kidd] has never received a global breakdown of the fee earners’ time spent on the matter.”
Lord Doherty last month made an order that Levy & McRae and Brown produce a breakdown of their fees. Diamond states a “figure of £1,250,600” which covers a period of nine months in 2017, “appears to be vastly overstated”.
He adds that “counsel Jonathan Brown charged £1.1million as a base fee”.
Diamond’s report states: “These are the largest fees I have come across for junior counsel in one case without a trial. I could not locate any instructions from Levy & McRae to Jonathan Brown.
“It is also unclear as to what the product of his work was. There was little information on costs/rates charged.”
The row relates to court action Kidd took against his previous lawyers, Paull & Williamsons, over the sale of one of his companies.
Kidd hired Levy & McRae to represent him but the case was settled out of court for a “significant” undisclosed sum earlier this year.
His legal action, ongoing at the Court of Session, claims the agreement reached with both Levy & McRae – who represent Alex Salmond in his case against the Scottish Government – and Brown is “illegal and unenforceable”.
The Faculty of Advocates said they were “unable to confirm any complaint” and the SLCC said: “We can’t disclose informat ion about any speci f ic complaints.”
Levy & McRae and Brown declined to comment.
They should be reported to the relevant authority