Case description
The pursuer was knocked down by a motorist whilst she was on holiday in France in 2015. She was injured, and raised an action for compensation in the Court of Session against the motorist’s insurers.
The
pursuer instructed English solicitors, Irwin Mitchell, Birmingham to conduct the litigation. Irwin Mitchell engaged the services of Blacklocks Solicitors, Edinburgh to assist them, as local agents.
The litigation settled on 4 March
2020. The defenders paid an agreed level of compensation to the pursuer, and were ordered by the court to pay her legal expenses, as taxed, on a party and party basis.
Blacklocks lodged an account with the Auditor of Court. They sought
expenses in the amount of £260,629.11. That amount comprised their own fees of £8671.57 plus VAT of £1734.29, and outlays of £250,223.35. Of these outlays, £250,177.35 was for Irwin Mitchell’s fees. This had been prepared
on the English equivalent of the Scottish "agent and client" basis, meaning that the level sought was higher than would be allowed on a party and party basis.
The defenders objected to the account. They asked the Auditor to disallow
the outlays in respect of Irwin Mitchell’s fees. Following a diet of taxation (a hearing before the Auditor) the Auditor determined that, it was not reasonable for the pursuer to have instructed foreign solicitors. Following a further
diet of taxation, the Auditor issued his report allowing total sum of £136,783.20; made up of Blacklocks’ abated fees plus VAT and a number of outlays which Irwin Mitchell had incurred, such as counsels' fees.
The pursuer appealed
the Auditor’s report to the court. The matter called before the Lord Ordinary for a hearing. The Lord Ordinary held that the Auditor’s decision was correct. The pursuer now reclaims (appeals) the Lord Ordinary’s decision.
The First Division will hear the appeal on Friday 16 June 2023.