legal fees
📖 What is legal fees? Meaning and definition
Legal fees represent the costs associated with engaging legal professionals to handle various aspects of a case or transaction. In the context of tenancy and leasehold, these fees can arise from disputes heard by tribunals, such as the First-tier Tribunal, or from administrative processes related to property, like the grant of a new lease. For instance, a landlord might incur legal fees for preparing evidence in a service charge dispute, and a tribunal may determine if a tenant is liable to pay a share of these. Similarly, a tenant seeking a new lease might be responsible for legal fees related to that process.
These fees are often subject to scrutiny, particularly in tribunal settings, where their reasonableness can be challenged. A tribunal has the power to determine which legal fees are payable and by whom. For example, a tribunal might decide that certain legal fees charged for evidence preparation are payable by an applicant, while other challenged legal fees are not. This ensures that parties are not unduly burdened with unreasonable costs.
Legal fees can also include disbursements, which are out-of-pocket expenses incurred by legal professionals on behalf of their client, such as courier charges or Land Registry fees. When a tribunal awards costs, it can specify the exact amount of legal fees and disbursements to be paid by one party to another. This can happen in cases where one party's application for costs is allowed, requiring the other party to reimburse them for their legal expenses.
It's important for self-represented litigants to understand that while they may not incur solicitor's fees themselves, they might still be liable for the legal fees of the opposing party if the tribunal orders it, or they might be able to claim their own tribunal fees back. The tribunal's decision will clearly set out what sums are payable, including any legal fees, valuation fees, and disbursements, often with VAT added.
📋 Requirements
- The fees must relate to legal services, such as preparation of evidence or representation.
- The fees may be challenged for reasonableness, especially in tribunal proceedings.
- A tribunal must determine if the fees are payable and by which party.
- Fees can include disbursements like Land Registry or courier charges.
- In some cases, legal fees may be passed on through service charges, unless a tribunal orders otherwise.
📝 Procedure
- A party incurs legal fees for services like preparing evidence or seeking a new lease.
- The reasonableness or payability of these fees is challenged, often by an applicant to a tribunal.
- The tribunal considers the application and evidence regarding the fees.
- The tribunal makes a determination on which legal fees are payable and by whom.
- An order may be made for one party to pay another's costs, including legal fees, within a specified timeframe.
💡 Examples
- A tenant successfully challenged the reasonableness of legal fees charged by their landlord for the preparation of evidence in a service charge dispute, resulting in only a portion of the fees being deemed payable.
- A tribunal determined that a tenant was liable to pay specific legal fees, valuation fees, and disbursements, including VAT, in connection with the grant of a new lease.
- An Employment Tribunal allowed a claimant's application for costs, ordering the respondent to pay a sum of £3,635 to cover the claimant's legal expenses.
- A tribunal made an order preventing a landlord from passing on their legal costs of tribunal proceedings to lessees through service charges.
📚 Legal basis
- Landlord and Tenant Act 1985
- Leasehold Reform, Housing and Urban Development Act 1993
- Commonhold and Leasehold Reform Act 2002
❓ Frequently asked questions
What are legal fees in the context of a tenancy dispute?
In a tenancy dispute, legal fees are the costs charged by solicitors or barristers for their services, such as preparing documents, representing a party in a tribunal, or providing legal advice related to the case.
Can a landlord pass their legal fees onto me through service charges?
A landlord might attempt to pass on their legal fees through service charges, but a tribunal can make an order under Section 20C of the Landlord and Tenant Act 1985 to prevent this, meaning those costs cannot be recovered from lessees.
What if I think the legal fees I'm being asked to pay are too high?
If you believe legal fees are unreasonable, you can challenge them, often through an application to a tribunal. The tribunal will then determine the payable sum, as seen in cases where tenants challenged the reasonableness of legal and valuation fees.
Do legal fees include other expenses, or just the lawyer's time?
Legal fees can include both the charges for the lawyer's time and 'disbursements,' which are out-of-pocket expenses like courier services or Land Registry fees, often with VAT added to the total.
If I win my case, will the other side have to pay my legal fees?
If you are successful, you can apply for costs, and the tribunal may order the other party to pay your legal fees, as demonstrated by a claimant being awarded costs by an Employment Tribunal.
I am representing myself; do I still have 'legal fees'?
While you won't have solicitor's fees, you might incur tribunal fees. If you win, the tribunal may order the other party to reimburse you for these fees, as one applicant was reimbursed £100 for tribunal fees.