COST BITES 105: HOW TO LOSE £1.4 MILLION IN COSTS: A SHORT REPORT OF A SHARP SHOCK FOR THE CLAIMANT’S SOLICITORS

Normally I use first-hand judgments to write about cases. However I think it important to point people towards the case reported by PIC Legal “Time for a Retainer Review”.  This reports on the judgment of Costs Judge James in IXG (by his wife and Litigation Friend, Mrs JXG) v Dr Barnes & Ors [2023] EWHC 1688 (SCCO). A case where a failure to comply with the Concellation of Contracts Made in a Consumer’s Home or Place of Work Regulations 2008 meant that the claimant’s solicitors costs were not recoverable. Further only a very limited amount of disbursements were recoverable. This represented a loss of £1.4 million.

THE CASE

The claimant had succeeded in an action against the defendant and the defendant was liable to pay costs. Costs were claimed at £1.4 million.  The defendant argued that the claimant’s retainer was invalid because there was a failure to comply with the The Cancellation of Contracts Made in a Consumer’s Home or Place of Work etc. Regulations 2008.

THE DEFENDANT’S SUCCESSFUL ARGUMENT

The defendant was successful on all the points it raised.  The claimant was only entitled to recover the ATE premium and any disbursements paid personally. All other disbursements were addressed to the solicitor and were not allowed.