HL Deb 24 October 1990 vol 522 c1446

140 After Clause 76, insert the following clause:—

Agreements with solicitors for payment by hourly rates

'.—(1) Section 57 of the Solicitors Act 1974 (non-contentious business agreements) shall be amended in accordance with subsections (2) to (4).

(2) In subsection (2) (method of payment which may be agreed), after the words "gross sum" there shall be inserted "or by reference to an hourly rate".

(3) In subsection (4), for the words "Subject to subsection (5)" there shall be substituted "Subject to subsections (5) and (7)".

(4) After subsection (5) there shall be inserted the following subsections—

"(6) Subsection (7) applies where the agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

(7) If, on the taxation of any costs, the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the taxing officer may enquire into—

  1. (a) the number of hours worked by the solicitor; and
  2. (b) whether the number of hours worked by him was excessive."

(5) In section 59(1) of the Act of 1974 (method of payment which may be agreed in contentious business agreement) after the words "gross sum" there shall be inserted "or by reference to an hourly rate".

(6) In section 60(1) of the Act of 1974 (which among other things provides for section 69 of that Act not to apply to contentious business agreements), after the word "or" there shall be inserted "(except in the case of an agreement which provides for the solicitor to be remunerated by reference to an hourly rate)".

(7) In section 61 of the Act of 1974 (enforcement of contentious business agreements), the following subsections shall be inserted after subsection (4)—

"(4A) Subsection (4B) applies where a contentious business agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

(4B) If on the taxation of any costs the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the taxing officer may enquire into—

  1. (a) the number of hours worked by the solicitor; and
  2. (b) whether the number of hours worked by him was excessive." '.

The Lord Chancellor

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 140. I spoke to this amendment with Amendment No. 138.

Moved, That the House do agree with the Commons in their Amendment No. 140.—(The Lord Chancellor.)

On Question, Motion agreed to.