High court rules Legal Ombudsman overstepped in capacity award but rejects discrimination claim
A family law firm has secured a partial victory in the High Court after challenging a Legal Ombudsman (LeO) decision awarding over £51,000 in compensation to a former client. The court found that the ombudsman was wrong to grant an additional £15,692 related to the firm’s alleged failure to properly assess the client’s capacity.
Aina Khan Law Ltd, a London-based family law specialist, disputed the LeO’s ruling that upheld parts of a complaint against the firm. The ombudsman had ordered the firm to pay a total of £51,192.60, a sum the firm argued was excessive and disproportionate to its turnover. They also contended that the LeO had acted beyond its remit and discriminated against them by imposing an unfairly large award.
Deputy High Court judge David Pievsky KC presided over the case of Aina Khan Law v Legal Ombudsman. While the judge criticised the firm for submitting relevant documents late, causing delays and inconveniencing the court, he ultimately found that the LeO’s conclusions on the firm’s handling of capacity issues were not rationally supported.
Embed from Getty ImagesHowever, the firm’s claims that the ombudsman had exceeded its jurisdiction and discriminated against the small practice were dismissed by the court. The judge ruled that these grounds did not stand.
The ruling awarded the firm partial success but on a far narrower basis than the full relief sought. Judge Pievsky emphasised the importance of procedural compliance, noting the firm’s failure to submit critical evidence in a timely manner. This led to the adjournment of the substantive hearing on 6 March 2025, causing costs and delays that inconvenienced both the court and other parties involved.
In recognition of this, the judge reduced the costs awarded to the firm, granting them £19,036—representing 40% of the costs they had claimed. This decision balanced the firm’s partial success with the procedural failings that had negatively impacted the case timetable.
The case highlights the complexities surrounding legal ombudsman complaints and the challenges smaller law firms face when contesting decisions perceived as disproportionate. It also underlines the High Court’s role in scrutinising the fairness and reasonableness of ombudsman rulings, particularly when substantial compensation sums are involved.
For Aina Khan Law Ltd, the ruling offers a measure of relief by overturning part of the LeO’s award, but also serves as a reminder of the importance of timely procedural compliance in judicial reviews.
