Article 12

After rule 15, there shall be inserted the following new rule—

“Conditional fee agreements

15A

(1)

This rule applies to every taxation of a solicitor’s bill to his own client where the solicitor and his client have entered into a conditional fee agreement as defined by section 58 of the Courts and Legal Services Act 1990.

(2)

In this rule—

(a)

‘the base costs’ means the costs other than a percentage increase;

(b)

‘percentage increase’ means a percentage increase pursuant to a conditional fee agreement entered into between the solicitor and his client or, as the case may be, between counsel and the solicitor.

(3)

On a taxation to which this rule applies, the client may apply for taxation of either the base costs or a percentage increase, or of both.

(4)

Where the client applies for taxation of a percentage increase, he—

(a)

may give reasons why the percentage increase should be reduced; and

(b)

may state what he believes the percentage increase should be.

(5)

On a taxation to which this rule applies—

(a)

where the client applies for taxation of the base costs, the base costs shall be taxed on an indemnity basis as if the solicitor and his client had not entered into a conditional fee agreement and rule 15(2) shall apply to the taxation of the base costs;

(b)

where the client applies for taxation of a percentage increase, the percentage increase may be reduced where it is disproportionate having regard to all relevant factors, including—

(i)

the risk that the circumstances in which the fees or expenses would be payable might not occur;

(ii)

the disadvantages relating to the absence of payments on account;

(iii)

whether the amount which might be payable under the conditional fee agreement is limited to a certain proportion of any damages recovered by the client;

(iv)

whether there is a conditional fee agreement beween the solicitor and counsel.

(6)

A percentage increase may be reduced notwithstanding that it does not exceed the maximum percentage permissible pursuant to section 58(2) of the Courts and Legal Services Act 1990.

(7)

When considering the factors mentioned in paragraph (5)(b)(i) and (ii), the taxing officer shall have regard to the risk or disadvantages (as the case may be) as they reasonably appeared to the solicitor or counsel when the conditional fee agreement was entered into or at the time of any variation of the agreement.

(8)

Taxations under this rule may be carried out only by a taxing master or district judge.”.