legal eagles - advice sought for sharp situation

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I think I've just been the victim of some very sharp practice by a firm of lawyers who specialise in employment law. I was recently made redundant and had asked this company to review my CA (compromise agreement). You can get this done online for set maximum fees of around £250 to £350. My previous employer had agreed to pay £250(+VAT) towards legal fees, estimating that it wouldnt cost more than that. I engaged this company who agreed that they would cap their fee to £250 based on the work needing done taking no more than two hours, after which it would be £195 per hour (!!! I thought, wut?) but agreed verbally over the phone that it shouldnt take more than this time. I specifically went with this firm because they were local and I explained why I was chosing them at the time and the price I expected to pay. So, to cut a long story short I've received an invoice now for over 700 quid (this is after the employer's contribution has been deducted from the bill - yes, they expect over a grand for reviewing a compromise agreement). I havent managed to speak to anyone from the firm yet but wanted to cool down and maybe get some independant advice before an angry phone call.

Initial contact: Explained situation, and was asked to send in the CA (compromise agreement)
They then emailed me with "terms of business" which did not include a set fee, and a letter stating capped fee of £250 + VAT to be invoiced directly to employer for first two hours of work. Next line reads "Any additional work beyond this will be charged at my normal hourly rate". I did say over the phone "hah, yeah, and if it gets anywhere near two hours, you'll let me know, right?" - they never did. The invoice they've sent me claims 5 hours work was recorded on "my file". There was one insertion into the agreement itself and one amendment done by email, and I went to their offices to sign the actual final agreement. I thought it strange that they laboriously kept me there going through the whole thing "one last time" but thought nothing of it at the time other than that they were being thorough. Even so, I wasnt there more than 40 minutes, and that was waiting for the solicitor to finish something else off for 10-15 mins. I estimate that the actual work done in total including me signing the agreement would not have taken more than 2 hours, realistically, but Im sure they will be able to "break it down, showing exactly when and where the time was spent" when I call. i.e. they will just say what they want. I feel that if they were going to screw me this much, they should at least have bought me dinner...:( They just appear to have written themselves a large number on a blank cheque.

Anyone have any advice or similar experiences? The amount they are after is a hefty chunk of what is effectively statutory redundancy plus a small token payment. Really quite frustrated and saddenned. Bad enough being made redundant without being made to pay out this kind of money.

Help?
 
Sounds like sharp practice. Refuse to pay. I would go to the citizens advice bureau, I would also consider contacting the solicitors regulatory authority as they are being totally unethical. I think if you warn them you will be writing to the sra then they will probably back down.
 
Yes - argue it. I work for accountants so invoice in similar ways. Point out the agreement was £250 + VAT would be invoiced, any extras had to be agreed by yourself. If you haven't agreed any extras, say so, and say they haven't abided by their side of the contract.

Ask for a detailed breakdown of costs, include who worked, their charge out rates, the work performed and for how long. Argue any points you don't feel are reasonable.

Point out you feel their time is excessive and beyond the bounds of your initial agreement. Remember, they are at the end of the day a service organisation, if you're not happy with the service bring that up.

With sufficient fuss they should at the very least reduce their fee.

Edit: At no point say what they're doing is "unethical". It's not unethical unless they're lying about the time spent which is unlikely. So I wouldn't even bother going down that road.
 
I engaged this company who agreed that they would cap their fee to £250 based on the work needing done taking no more than two hours, after which it would be £195 per hour (!!! I thought, wut?) but agreed verbally over the phone that it shouldnt take more than this time. I specifically went with this firm because they were local and I explained why I was chosing them at the time and the price I expected to pay. So, to cut a long story short I've received an invoice now for over 700 quid (this is after the employer's contribution has been deducted from the bill.

Help?

If they agreed with you that costs would not exceed £250 + VAT they are in breach of the solicitor's code of conduct rule 2.03 which regards information as to costs.

They are obliged to have a complaints handling procedure so I would tell them you want to make a formal complaint pronto.

EDIT - from what you have written I'm not 100% sure as to what they did agree. Either way, if they represented that it would be a much lower fee, I would still dispute it.
 
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7 legged spider is helpful, uh... cheers for that.

Anyway, if I say, "I didnt agree to any extra time over the two hours specified", they might say,
"Ah, but we did say that any time over the 2 hours would be chargeable at £195+VAT per hour."
But there was definitely the implication that it wouldnt go over this, and I did most definitely say on the phone to them that they should tell me if I was going over the 2 hours. At least in a taxi you can watch the meter clocking up. As to the "breakdown of costs", Im sure I could invent 5 hours worth of work for an actual hour and a half's work - some people do that every day! :) Even if they had sent me a bill for like £100 I would have been annoyed and called them up but somewhere in the mid 700s is not even slightly reasonable.
 
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Ah love it! To OP, Im afraid im no use in this but wish you all the best in getting it turned round, this sort of thing is why I ensure to have a large a varied network as essentially everyone is out to screw you these days. It seems providing great service and relying on loyalty is non-existant these days.

*Have you checked any complaints have been posted online anywhere? Not the same situation but I was basically screwed over by a company, my first port of call was my local CAB. I also hunted around online and found several complaints over the company on forums and one person advising contacting the CAB in which the company operated. One e-mail and 12hours later my money was returned simply due to whatever the CAB in the company's area said - about 2weeks later I got a callback from my local CAB looking to resolve the issue.
 
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7 legged spider is helpful, uh... cheers for that.

Anyway, if I say, I didnt agree to any extra time over the two hours specified, they might say, "Ah, but we did say that any time over the 2 hours would be chargeable at £195+VAT per hour." But there was definitely the implication that it wouldnt go over this, and I did most definitely say on the phone to them that they should tell me if I was going over the 2 hours. At least in a taxi you can watch the meter clocking up. As to the "breakdown of costs", Im sure I could invent 5 hours worth of work for an actual hour and a half's actual work - some people do that every day! :) Even if they had sent me a bill for like £100 I would have been annoyed and called them up but somewhere in the mid 700s is not even slightly reasonable.
It sounds like you have a reason to be miffed. Tell them you want to make a formal complaint through their written complaints procedure - they can't charge you any extra for this.
 
Reviewing a CA is bog standard work and no way should it cost more that £250 unless there are special circumstances/massive payout

The wording on these is pretty standard and unless you are the first person to leave employment with your old firm, the CA will have been crawled over by various solicitors over the years and your employer would have made any valid corrections to their wording to avoid future problems

I've seen plenty of these bills and my firm's never had someone come back saying that £250 wasn't enough
 
quick update: after emailing the original person I dealt with to see if there had been some mistake, the company got back to me saying they'd look into it.

Yesterday, I got a letter offering "as a goodwill gesture" a reduced amount of £600 as long as it was paid within the week...
 
Hi,

Is this still an ongoing issue for you? If so then e-mail me the details and I'll pass them onto one of the solicitors here.
 
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