We are obliged to forward you this information in relation to costs under Law Society Regulations.

It is not possible at this stage to give you a note of our Actual Charges for this matter nor a Detailed Estimate. For this reason we set out briefly the basis upon our charges will be made.

Solicitors charges are generally calculated by reference to the time spent on the matter in question, and the work and the nature of the work concerned. The level of charge will also depend on:-

(A) The complexity of the matter

(B) The urgency of the matter

(C) The difficulty or the novelty of the questions raised

(D) The skill, labour, specialised knowledge and responsibility involved

(E) The number and importance of the document prepared or examined

(F) The amount or value of any transaction being involved

(G) The importance of the matter to you

(H) The time reasonably spent by the Solicitor and his firm on the above matter

(I) The place and the circumstances in which the above matter is pursued.

In addition to the Professional Fees there will be items of Outlay which will have to be discharged by you. Also where Value Added Tax arises currently 21% on Solicitors Professional Fees such Vat is the responsibility of the client.

In this case you remain responsible for the payment of our charges even where you reach a settlement with the Defendant or third party or they are ordered to pay costs. The amount which the Defendant or third party may agree and or may be directed to pay will not generally cover our entire charges. The process of recovering such costs on your behalf may involve Additional Fees and Outlay. In so far as the costs are recovered from the other party or insufficient to discharge your liability to us for costs, then you will be liable to make up the short fall.

We shall bill you in the normal way and you will be responsible for payment of this bill. We will then seek to recover as much as possible of this bill from the Defendant or third party. You should bear in mind that in the event of your:-

(A) losing

(B) compromising the case or

(C) the court failing to award you your costs or a portion of them

(D) the court award cost against you

(E) being unable to recover due to financial status of the other party

You may be made liable to pay the other party, parties costs as well as your own.

MICHAEL D. CUNNINGHAM & CO., SOLICITORS

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