The High Court has dismissed a solicitor’s attempt to overturn a Legal Ombudsman ruling that awarded £50,000 in compensation to former clients following a complaint about legal fees and cost transparency.
The complaint arose from a neighbour dispute in which the clients alleged that their legal costs significantly exceeded initial estimates without adequate warning or explanation. The Legal Ombudsman upheld the complaint, concluding that the clients had not been properly informed as fees escalated, and ordered both compensation and a substantial reduction in the fees charged.
The solicitor applied for judicial review, arguing that the ombudsman’s decision was unfair and unsupported by evidence. However, the court rejected the challenge, finding that the ombudsman had acted within its discretion and that a judicial review is not a forum for re-examining the merits of such decisions.
The court also confirmed that the financial remedies imposed fell within the scope of the Legal Ombudsman’s statutory powers.
Why this matters
The decision serves as a reminder of the importance of clear, ongoing communication with clients about costs, particularly where estimates are exceeded or litigation expenses increase. Firms are expected to keep clients informed so they can make properly informed decisions about how to proceed with their case.
