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Legal aid charge on our home.

  • legal2000
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29 Apr 11 #265574 by legal2000
Topic started by legal2000
I seperated in 2005, granted contact and PR in early 2006. leagl aid and contributions made.
The mother reneiged on the contact order and refused any form of contact. I was advised to return to court and make an app to enforce contact. Contact began again.
The mother again refused contact on three further occasions between 2006 and 2007, and I had to return to court on each occasion.
The legal aid bill/costs were mounting up because of the mothers refusal to adhere to a contact order.
The mother also had to sign undertakings not to harass or cause violence to myself or my property, of which she also broke and a committal to court was advised, legal aid sort.
My point being: in 2009, the LSC attached a chcharge to my home for all the costs.
I've heard about the bill of costs and 21
days to dispute any costs, however,
why wasn't the costs of returns to court
applied to the other party?
because it was the mothers ignorance of an
order of there court (on the advice of
CAFCASS and social services ) that contact
must take place.
Interest on the charge is approx £732 p/a
which is contantly putting me into negative
equity, its causing hardship and distress.
Q - Can I apply to the court to have them
waiver part costs because the return to
court applications were for the benefit of
the child (childrens act 1989)?
Q - I accept the initial costs from 2005-
2006 for contact and PR.
Q - should my solicitors advised that returns
should be applied (costs)to the other side?
Q - how can I challenge this unfair charge
for representing my and the childs rights?
Q- Can I have the bill of costs reveiwed again?
Please, any advice?

  • .Charles
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29 Apr 11 #265612 by .Charles
Reply from .Charles
The Statutory Charge applies to all costs incurred under a certificate which includes a cause of action which includes proceedings for a financial settlement.

Typically, a certificate is granted for Ancillary Relief and Children Act proceedings are added or vice versa.

If a recovery of preservation is made in ancillary relief proceedings, the Statutory Charge will apply to all costs even if most of those costs are incurred in dealing with Children Act issues.

To answer your questions:

The Court has no power to waive application of the Statutory Charge in full or in part. Only the Legal Services Commission can operate the Charge and the Commission cannot waive the charge either as this is not allowed under Statute. The Charge can be deferred though as it has been in your case. Simple interest is added at 8% per annum and begins to accrue upon payment of the solicitors final bill of costs.

In Children Act and Ancillary Relief cases, the rule of recovering costs from the opposing part is disapplied. It is very difficult to obtain an order for costs even when the other side is wrong. The only way a costs order *may* be made is if the other side is guilty of litigation misconduct. Your solicitor would have applied for a costs order if it was appropriate but in most circumstances it is not.

You cannot challenge the application of the Statutory Charge. In all fairness you have received legal assistance at a third of the rate that privately paying clients would have had to bear so you have received a large benefit even though you have to repay these costs.

Once you have received the bill of costs you have 21 days in which to raise a dispute to the bill, in relation to individual items or the bill as a whole. The disputes have to be based on whether the work was reasonably incurred and reasonable in amount. You are effectively challenging the work that your solicitor has undertaken on your behalf.

Even if you do not challenge the bill, a Judge will 'provisionally assess' the bill in the absence of you or your solicitor and will reduce or delete those items that are deemed to be unreasonable.

If you do challenge the bill there will be a detailed assessment hearing at which you and your solicitor will have to attend. The Judge will hear from both of you and make a decision based on both sets of submissions.

Unfortunately, where a party is unreasonable this causes costs to be incurred unnecessarily. This is unfortunately very common in Children Act proceedings.

Charles

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29 Apr 11 #265625 by legal2000
Reply from legal2000
Many thanks Charles.
It appears that I will be wasting the application fee to the court only for them to state that the charge stands!
What happens then if we lose our home and the sale of the house wont cover the outstanding mortgage and charge?
If the charge is not paid off, it would be near double in 12yrs after interest.
8% is a bigger rate than my mortgage, what ever I pay off the mortgage is just being added back on by LSC interest.
other debts freeze the interest if your paying them off, why not this?
regards

  • hawaythelads
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29 Apr 11 #265628 by hawaythelads
Reply from hawaythelads
I calculate fom the interest at 8% being £732.
that you owe £9150 to the legal aid.Lump sum.
You have to remortgage to pay that off or take out a loan.
I know that you'll probably say I can't afford it but you can't afford not to.
If you bolt it on to the mortgage by lets say taking out a flexible type one account mortgage then you borrow 4.9 times your earnings is there enough equity left in the house to cover the remortgage as most lenders are requiring bigger deposits nowadays.like 20% - 30% really you need to talk to a mortgage advisor everyone knows a dodgy (I meant creative one) that can get you more than you should have really.
But your mortgage interest rate will only be 4% max.
All the best
Pete

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