Act of Sederunt (Fees of Solicitors in Speculative Actions) 1992

Made: 23rd July 1992

Laid before Parliament: 3rd August 1992

Coming into force: 24th August 1992

The Lords of Council and Session, under and by virtue of the powers conferred on them by section 40 of the Sheriff Courts (Scotland) Act 1907([^f00001]), section 61A(4) of the Solicitors (Scotland) Act 1980([^f00002]), of all other powers enabling them in that behalf, having consulted the Council of the Law Society of Scotland, do hereby enact and declare:

Citation and commencement

1

• (1) This Act of Sederunt may be cited as the Act of Sederunt (Fees of Solicitors in Speculative Actions) 1992 and shall come into force on 24th August 1992.

• (2) This Act of Sederunt shall be inserted in the Books of Sederunt.

Speculative fee charging agreement

2

• (1) Where—

• (a) any work is undertaken by a solicitor in the conduct of litigation for a client; and

• (b) the solicitor and the client agree that the solicitor shall be entitled to a fee for the work only if the client is successful in the litigation; and

• (c) the agreement is that the solicitor’s fee for all work in connection with the litigation is to be based on an account prepared as between party and party,

the solicitor and client may agree that the fees element in that account, as hereinafter defined, shall be increased by a figure not exceeding 100 per cent.

• (2) The client shall be deemed to be successful in the litigation where—

• (a) the litigation has been concluded by the pronouncing of a decree by the court which, on the merits, is to any extent in his favour;

• (b) the client has accepted a sum of money in settlement of his claim in the litagation; or

• (c) the client has entered into a settlement of any other kind by which his claim in the litigation has been resolved to any extent in his favour.

• (3) The fees element referred to in sub-paragraph (1) above shall, subject to sub-paragraph (4) below, comprise all the fees in the solicitor’s account of expenses for which any other party to the litigation has been found liable, taxed as between party and party or agreed, before the deduction of any award of expenses against the client.

• (4) The fees element referred to in sub-paragraph (3) shall not include the sums payable to the solicitor in respect of—

• (a) any fees payable for copying papers and the proportion of any process fee and posts and incidents exigible thereon;

• (b) any discretionary fee allowed under Regulation 5 of the General Regulations set out in the Schedule to the Act of Sederunt (Fees of Solicitors in the Sheriff Court) 1989([^f00003]); and

• (c) any charges by the solicitor for his outlays.

Signed

J.A.D. Hope — Lord President I.P.D. — 23rd July 1992

Explanatory note

This note is not part of the Act of Sederunt)

This Act of Sederunt applies to speculative actions in the sheriff court. It—

• (a) enables the solicitor and the client to agree that in the event of the success of the client the fees element in the solicitor’s account of expenses shall be increased by a maximum of 100% (paragraph 2(1));

• (b) defines “success” for the purpose of determining whether the solicitor is entitled to a fee (paragraph 2(2)); and

• (c) defines the fees element for the purpose of applying the agreed percentage increase (paragraph 2(3) and (4)).

Footnotes

[^f00001]: 1907 c. 51; section 40 was amended by the Schedule to the Administration of Justice (Scotland) Act 1933 (c. 41) and by paragraph 7 of Schedule 1 and Schedule 2, to the Divorce Jurisdiction, Court Fees and Legal Aid (Scotland) Act 1983 (c. 12) and is to be read with section 1(3) of the Secretaries of State Act 1926 (c. 18).

[^f00002]: 1980 c. 46; section 61A was inserted by section 36(3) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40).

[^f00003]: S.I. 1989/434.