Authors:LAG
Created:2012-05-08
Last updated:2023-09-18
Law Society guidance on recoupments
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Administrator
Following the cases of Henthorn and Loomba, on when the LSC can recoup payments on account from providers, the Law Society have issued some guidance for practitioners. They anticipate an increase in recoupment activity and potentially legal action between providers and the LSC and if you carry out civil certificated work you should consider the guidance. The cases made clear that the LSC is bound by the Limitation Act in its powers of recovery, and that the limitation period is six years, but that time runs not from the end of the case but from the date the costs are certain, i.e. the date of the detailed assessment. If costs are never assessed, limitation will not expire. The Law Society therefore advises firms to retain files for at least six years from the date of assessment of costs, and all firms should consider changing their procedures for file storage if they have not already done so.