Proceeds of sale, costs and interest where there is doubt as to a client’s identity (Little v Bloomsbury Law Solicitors)

Article summary

Dispute Resolution analysis: Mr Little, received an adverse costs order following failed winding-up proceedings against his solicitors, Bloomsbury Law, relating to them withholding the proceeds of sale of Mr Little’s property, due to concerns they had relating to his identity. The court had to consider the conduct of Bloomsbury Law in dealing with these suspicions and consequently, Mr Little’s entitlement to interest on the proceeds while held on client account, as well as Bloomsbury Law’s entitlement to costs incurred following the dismissal of the winding-up petition, which they asserted to be ‘costs of and incidental to’ the dismissal. The court held that Bloomsbury Law should have applied to the court for directions relating to the proceeds following the dismissal, being some three years after the sale of Mr Little’s property. Further, Bloomsbury Law’s claim for more than £15,000 in costs incurred following the dismissal did not amount to ‘costs of and...