COST BITES 42: INDEMNITY COSTS, CONDUCT AND CORRECTING MISTAKES: PROVIDING SUFFICIENT MATERIAL ON ASSESSMENT IS ESSENTIAL
In Deutsche Bank AG v Sebastian Holdings Inc [2023] EWHC 9 (SCCO) Senior Costs Judge Gordon-Saker held that a claimant was only entitled to 70% of its costs of assessment. There were difficulties in the way that the claimant had…
COST BITES 41: PREJUDGMENT INTEREST ON COSTS – CONSIDERED BUT REFUSED
In Adcock & Ors v Blemain Finance Ltd [2022] EWHC 3280 (SCCO) Costs Judge Whalan considered, and rejected, the claimants’ arguments that they should have pre-judgment interest on costs. “It is clear nonetheless that the incipitur rule constitutes the…
PROVING THINGS 244 (& COST BITES 39): WHY COSTS LAWYERS HAVE TO KNOW ABOUT PROVING THINGS
We are returning to the decision on Mr Justice Cavanagh in Shepherd & Co Solicitors v Brealey [2022] EWHC 3229 (KB) to consider another aspect of the rules relating to costs. The solicitors were seeking to persuade the court to…
IF YOU DON’T SAY WHO YOU ARE THEN YOU CANNOT ARGUE POINTS AT A DETAILED ASSESSMENT OF COSTS
In Wright v Person Or Persons Unknown Responsible for the Operation and Publication of the Website bitcoin.org [2022] EWHC 2982 (SCCO) Costs Judge Rowley held that if a paying party wanted to take part in a detailed assessment of costs…
COST BITES 37: DRAFTING THE SCHEDULE FOR SUMMARY ASSESSMENT: DEFECTS, DEFAULTS AND REMEDIES
The judgment of Tribunal Judge Amanda Brown KC in Harris v Revenue and Customs (COSTS – complex track application for idemnity costs on the basis of unreasonable behaviour – application in response to strike out for failure to meet terms…
“THERE IS NO PORTAL FOR LOW VALUE PRODUCT LIABILITY CLAIMS”: FIXED COSTS DID NOT APPLY
I am grateful to Paul Balen for sending me a case report of a product liability case he was involved in. The judge found that a product liability case is not required to be lodged in the portal. This had…
COST BITES 35: SOLICITOR AND OWN CLIENT SUCCESS FEES CONSIDERED IN DETAIL: 20% REDUCED TO 15% BY COSTS JUDGE
The judgment of Costs Judge Brown in MNO v HKC & Anor [2022] EWHC 2919 (SCCO) considers the question of an appropriate success fee between solicitor and client in a personal injury case. The judge did not accept the argument…
COST (MEGA) BITES 35: THE DETAILED ASSESSMENT THAT LASTED 104 DAYS : COSTS JUDGE REFUSES TO VARY EARLIER DECISION
In Deutsche Bank AG v Sebastian Holdings Inc. & Anor [2022] EWHC 2920 (SCCO) Senior Costs Judge Gordon-Saker gave a judgment which finalised a detailed assessment that had lasted 104 days. The judge found that, prior to the assessment concluding, …
WHEN SHOULD COSTS BE SUMMARILY ASSESSED OR SUBJECT TO DETAILED ASSESSMENT? HIGH COURT CONSIDERS THE ISSUES
In Brake & Anor v Guy & Ors (Costs) [2022] EWHC 2907 (Ch) HHJ Paul Matthews (sitting as a High Court Judge) considered an argument that the costs of an application should be subject to detailed assessment rather than summarily…
DEFENDANT SOLICITOR IN COSTS ASSESSMENT NEED NOT RESPOND TO PART 18 REQUESTS ABOUT PREMIUMS: “THE GENERAL QUESTIONS POSED ARE A PARADIGM EXAMPLE OF A FISHING EXPEDITION”
I am grateful to Nick McDonell from Kain Knight for sending me a copy of the judgment of Costs Judge Rowley in Brown -v- JMW Solicitors LLP [2022] 2848 (SCCO). In that case the judge refused to make an order…
JUDGMENT ON ADMISSIONS ONLY AVAILABLE WHERE LIABILITY TO PAY DAMAGES IS ADMITTED: INTERIM COSTS ORDERS REQUIRE SCHEDULES TO BE AT COURT: LESSONS FROM THE GRENFELL LITIGATION
In Abdel-Kader & Ors v Royal Borough of Kensington and Chelsea & Ors [2022] EWHC 2006 (QB)Senior Master Fontaine considered the basis for applying for judgment and interim costs. The claimants had not identified the basis upon which judgment was…
COST BITES 25: DEFENDANTS’ CONDUCT LEADS TO COSTS BEING AWARD ON THE INDEMNITY BASIS
Those who write “robust” letters of response to a letter before action may benefit from reading the judgment of Mr Justice Andrew Baker in Pisante & Ors v Logothetis & Ors [2022] EWHC 2575 (Comm). The judge held that costs…
COST BITES 23: CLAIMANT FAILS IN APPLICATION FOR DELIVERY OF A SOLICITOR’S BILL OF COSTS: CHAMBERLAIN BILLS HAD BEEN SENT; A SIGNATURE ON AN EMAIL WAS SUFFICIENT; ELECTRONIC DELIVERY COMPLIED WITH THE SOLICITORS ACT
In Elias v Wallace LLP [2022] EWHC 2574 (SCCO) Senior Costs Judge Gordon-Saker dismissed the claimant’s application for a delivery of a bill of costs. He found that (i) the bills delivered were “Chamberlain” bills and had sufficient information for…
COST BITES 21: RECEIVING PARTY NOT CONFINED TO PROVISIONAL ASSESSMENT COSTS WHEN THE BILL SETTLES FOR LESS THAN £75,000: “IT WAS WITHIN THE DEFENDANT’S GIFT TO MAKE A REALISTIC PART 36 OFFER”
In UK Sovereign Investments Ltd v Hussain [2022] EWHC 2390 (SCCO)Deputy Costs Judge Campbell rejected an argument that a receiving party’s costs should be confined to provisional assessment costs when the parties had agreed those costs at £59,000. The case…
ASSESSMENT OF A SOLICITOR AND OWN CLIENT BILL OF COSTS: THREE IMPORTANT POINTS CONSIDERED: CLAIMANT’S CLAIM AGAINST SOLICITOR STRUCK OUT
In Sweeney v Wise Solicitors Ltd [2022] EWHC 2314 (SCCO) Costs Judge Rowley struck out a claimant’s application for an an assessment of costs against their former solicitor. The action seeking an assessment of costs was issued out of time…
COST BITES 16: THE CARE NEEDED WHEN QUANTIFYING “COSTS THROWN AWAY”: 45% OF CLAIMED COSTS TO BE PAID ON ACCOUNT
In Cabo Concepts Ltd v MGA Entertainment (UK) Ltd & Anor [2022] EWHC 2024 (Pat) Mrs Justice Joanna Smith considered the amount that should be ordered on account when costs were “thrown away” after an action was adjourned shortly before…
COST BITES 15: DEPARTING FROM THE GUIDELINE RATES FOR SPECIALIST WORK DONE OUTSIDE LONDON
In Lappet Manufacturing Company Ltd & Anor v Rassam & Ors [2022] EWHC 2158 (Ch) Mr Justice Adam Johnson allowed a higher hourly rate for a solicitor working outside London. The rate allowed, for a Nottingham firm, was £350 an…
PART 36 & COSTS: DEFENDANT COULD NOT SHOW INJUSTICE WHEN IT ACCEPTED A PART 36 OFFER OUT OF TIME: “PART 36 IS INTENDED TO BE A TWO-WAY STRAIGHT AND NARROW HIGHWAY”
In Holly Wright (& others) -v- Birmingham City Council District Judge Baldwin (sitting as Regional Costs Judge)* rejected an attempt by a defendant to obtain its costs where it accepted the claimants’ Part 36 offers late. The judge held that…
A COURT, ON A SOLICITOR AND OWN CLIENT ASSESSMENT, CANNOT CONSIDER ASSERTIONS OF UNDUE INFLUENCE OR ECONOMIC DURESS: DEFENDANT’S SUCCESSFUL APPEAL
In Lisa Jones v Richard Slade And Company Ltd [2022] EWHC 1968 (QB) Mr Justice Johnson overturned a decision that the court, on a Solicitors Act assessment, can determine issues of undue influence or economic duress. The judge held that…
COST BITES 8: CENTRAL LONDON HOURLY RATES: THE RATE DEPENDS ON THE LITIGATION NOT THE LITIGATOR
In Brake & Anor v Guy & Ors [2022] EWHC 1911 (Ch) HHJ Paul Matthews (sitting as a High Court Judge). Considered the appropriate hourly rate to be applied on an application. Although costs were being assessed on an indemnity…
COST BITES 7: INDEMNITY COSTS WHEN A CLAIMANT HAS TRIED TO HAVE A SECOND BITE OF THE LITIGATION CHERRY
In Tinkler v Esken Ltd (Costs) [2022] EWHC 1802 (Ch) Mr Justice Leech ordered indemnity costs against a claimant who, in essence, attempted to relitigate a case he had lost on previously. “A principal difference between an order for…
FIXED COSTS OUSTED WHEN THE PARTIES AGREE COSTS ARE TO BE THE SUBJECT OF A DETAILED ASSESSMENT: COURT OF APPEAL DECISION TODAY
In the judgment today in Doyle -v- M&D Foundations & Building Services Limited [2022] EWCA CIV 927 the Court of Appeal found that it was possible for parties to contract out of the fixed costs provisions of the protocols. THE…
COST BITES 1: USE OF A PARTNER IN A BOUTIQUE FIRM CAN LEAD TO LOWER COSTS
There are many cases in which judges make observations about costs which merit wider circulation. This series looks at those kinds of matters. It starts by looking at the observations of Mr Justice Foxton in Hotel Portfolio II UK Ltd…
SOLICITOR AND OWN CLIENT BILLS AND CONDUCT: CPR 44.11 DOES NOT APPLY: REDUCTION OF 75% OVERTURNED ON APPEAL
In John Poyser & Co Ltd -v- Spencer [2022] EWHC 1678 (QB) Mr Justice Morris (sitting with Senior Costs Judge Gordon-Saker as an assessor) overturned a finding that CPR 44.11 applies to solicitor and own client assessments. The practical result…
PERMISSION TO APPEAL REFUSED IN EDWARDS COSTS CASE: THE TEST FOR A SECOND APPEAL WERE NOT SATISFIED
In May I reported on the decision in Edwards (& others) -v- Slater and Gordon UK Limited [2022] EWHC 1091. There was an application for permission to appeal that judgment. Permission was refused. Full details can be found here THE CASE…
QOCS APPLIES TO LEGALLY AIDED CASES: HIGH COURT DECISION
In Macaulay v Karim & Anor [2022] EWHC 1270 (SCCO) Senior Costs Judge Gordon-Saker found that a legally aided claimant had the protection of QOCS. A defendant who had a costs order in its favour could not enforce that order…
THE COSTS JUDGE OVER YOUR SHOULDER 2: THERE WAS NO MISCONDUCT BY THE CLAIMANTS, HOWEVER THE COSTS OF ARGUING ABOUT CONDUCT WERE NOT ALLOWED
In Balaj & Ors v Secretary of State for the Home Department [2022] EWHC 1627 (SCCO) Costs Judge James considered, and rejected, the defendant’s arguments that the claimant’s conduct should lead to costs being reduced. However the costs of the…
THE COSTS JUDGE OVER YOUR SHOULDER: A WORKING EXAMPLE: THE DETAILED ASSESSMENT OF COSTS: HOURS, SUPERVISION AND THE USE OF COUNSEL
The judgment of Master Rowley in Lyle & Anor v Bedborough & Anor [2022] EWHC 1628 (SCCO) gives an insight into the process of detailed assessment of costs. The Master considered the complexity of the case, the use of counsel…
SUMMARY ASSESSMENT OF COSTS: HOURLY RATE TOO HIGH AND LAWYERS SHOULD LEARN TO DELEGATE
In Rushbrooke UK Ltd v 4 Designs Concept Ltd [2022] EWHC 1416 (Ch) HHJ Paul Matthews (sitting as a Judge of the High Court) considered the costs to be paid to a successful respondent. The judge did not allow the…
THE COSTS JUDGE OVER YOUR SHOULDER: THINKING ABOUT DETAILED ASSESSMENT OF COSTS FROM THE OUTSET: WEBINAR 20th JULY 2022
The assessment of costs is a crucial stage in litigation. Detailed assessment usually takes place after attempts at settlement of costs have failed and there are some major differences between the parties. Relatively few litigators have experience of attending a…
PAYING PARTY REFUSED PERMISSION TO RELY ON LATE POINTS OF DISPUTE IN ASSESSMENT: DECISION UPHELD ON APPEAL
In Celtic Bioenergy Ltd v Knowles Ltd [2022] EWHC 1223 (QB) Mrs Justice Foster refused the defendant’s appeal in a case where a very late addition to the points of dispute had been refused by Master Campbell. The issues that…
EXCESSIVE COSTS INCURRED IN ARGUING ABOUT COSTS: A PARTY OBTAINING RELIEF FROM SANCTIONS WAS CORRECTLY ORDERED TO PAY THE COSTS OF THE APPLICATION: “RULES EXIST FOR A REASON”
In Swivel UK Ltd v Tecnolumen GmbH & Anor [2022] EWHC 825 (Ch) Mr Justice Marcus Smith upheld the decision of a Master that a party that had obtained relief from sanctions should pay the costs of the application. It…
THE COURT SHOULD ASSESS COSTS SUMMARILY NOW: BUT THEY ARE SUBJECT TO A “SIGNIFICANT HAIRCUT”
One of the things I regularly do on this blog is to post judgments relating to the summary assessment of costs. These are not readily available elsewhere and this type of judgment is very popular with readers. The judgment of…
JUDGE VARIES ORDER SO SUMMARY ASSESSMENT OF COSTS REPLACES DETAILED ASSESSMENT: COSTS SUMMARILY ASSESSED AT £7,250,000
In Pipia v Bgeo Group Ltd [2022] EWHC 846 (Comm) Mr Justice Henshaw took the unusual step of replacing an order for detailed assessment with an order for a summary assessment and then assessing the costs. THE CASE The defendant…
DEFENDANTS HAVE TO PAY COSTS OF ATE PREMIUM: DEEMED ORDER FOR COSTS FOLLOWING ACCEPTANCE OF PART 36 OFFER INCLUDES THE COSTS THE ATE PREMIUM
In Dance v East Kent University Hospitals NHS Foundation Trust & Ors [2022] EWHC B9 (Costs) Costs Judge Leonard considered two ingenious arguments where the defendants attempted to avoid paying the claimant’s ATE premium. This involved consideration of the deemed…
WEBINAR ON THE SUMMARY ASSESSMENT OF COSTS: 29th MARCH 2022
On the 29th March 2022 I am presenting a webinar on the summary assessment of costs. This takes a detailed look at the rules, practice direction and relevant guidance. Booking details are available here. MATTERS TO BE COVERED When a…
THE INDEMNITY PRINCIPLE BITES ON A SUCCESSFUL DEFENDANT BUT NOT ON A SUCCESSFUL CLAIMANT INSURER: CLAIM £438,388.95 IN COSTS, RECOVER £1,368.75.
Issues relating to the indemnity principle give rise to a number of issues in litigation about costs. The principles loom large in the judgment of Costs Judge Leonard in Liverpool Victoria Insurance Co Ltd v Khan & Ors [2022] EWHC…
PERSONAL INJURY CASE SHOULD HAVE BEEN DEALT WITH BY A GRADE C FEE EARNER: SENIOR COSTS OFFICE DECISION
In TRX v Southampton Football Club Ltd [2022] EWHC B7 (Costs) Master Brown held that a low value personal injury case, arising from allegations of abuse, should be dealt with by a Grade C fee earner. This not authority for…
PROVING THINGS 226: RECOVERING INTEREST ON DISBURSEMENT LOANS: THE NEED FOR EVIDENCE
I am grateful to barrister James Miller for sending me a copy of the decision of District Judge Corkhill in the case of Gill -v- Barnsley Canister Company Ltd, a copy of which is available here Gill v Barnsley Canister…
COSTS, FATAL ACCIDENTS: THE DUTY TO INFORM THE CLIENT OF “UNUSUAL COSTS” AND WHEN THE BUDGET IS BEING EXCEEDED
The judgment of Senior Costs Judge Gordon-Saker in ST v ZY [2022] EWHC B5 (Costs) highlights many problem areas in relation to fatal accident litigation and the assessment of costs. In particular it is prudent to take early steps to…
ASSESSMENTS UNDER THE SOLICITORS ACT: INTERIM BILLS, VALID BILLS AND “SPECIAL CIRCUMSTANCES”: A DECISION ON APPEAL
The decision of HHJ Gosnell (sitting as a High Court Judge) in Richard Slade And Company Plc v Erlam [2022] EWHC 325 (QB) relates to the assessment of solicitor and own client bills. However the appeal also gave rise to…
A FINAL COSTS CERTIFICATE IS ESSENTIAL FOR COSTS TO BECOME DUE: THE BILL SHOULD HAVE BEEN SIGNED OFF…
In Johnston -v- Wackett [2022] EWHC 129 (Ch) Deputy Master Brightwell considered the question of whether costs become payable when a final costs certificate is not obtained. “Even though most paying parties may in practice pay without the need…
THERE IS NO RIGHT TO AN IMMEDIATE ASSESSMENT OF COSTS AFTER A SPLIT TRIAL: HOWEVER THERE IS AN (8%) STING IN THE TAIL
The judgment of Costs Judge Leonard in ABA v University Hospitals Coventry and Warwickshire NHS Trust [2022] EWHC B4 (Costs) highlights a point of costs and practice that is easily overlooked. A successful party who is awarded costs in a…
WHAT HAPPENS AT A SUMMARY ASSESSMENT OF THE COSTS OF A TRIAL? ALSO THE COSTS AND INTEREST THAT FOLLOWS A PART 36 OFFER
We have already looked at the judgment of HHJ Pearce (sitting as a High Court Judge) in The Huntsworth Wine Company Ltd v London City Bond Ltd [2022] EWHC 98 in relation to the construction of Part 36 offers. This was…
“DIVIDING THE BILL” WHEN TWO MATTERS PROCEEDED TOGETHER; THE AMOUNT OF INFORMATION NEEDED ON COUNSEL’S FEE NOTES & HOURLY RATES: A LOT IN ONE CASE
In R v Barts Health NHS Trust [2022] EWHC B3 (Costs) Costs Judge Rowley considered a number of interesting issues relating to the problem of apportioning costs where two actions had been run alongside each other. There are interesting observations…
CONDUCT AND COSTS: SUCCESSFUL DEFENDANT RECOVERS – NOTHING
In European Real Estate Debt Fund (Cayman) Ltd v Treon & Ors [2021] EWHC 2866 (Ch) Mr Justice Miles considered issues relating to costs after a defendant had succeeded at trial because the claimant’s action was statute barred. The judge…
CAN LEADING COUNSEL RECOVER THEIR FULL BRIEF FEE WHEN A CASE SETTLES TWO WEEKS BEFORE TRIAL?
In Hankin v Barrington & Ors [2021] EWHC B1 (Costs) Deputy Master Campbell considered the question of whether leading counsel’s brief fee was payable in full (or in part) by the defendant when the brief had been delivered but the…
THE SUMMARY ASSESSMENT OF COSTS: WHEN IT IS (ABOUT) A LOTTERY
I have mentioned before how many people are interested in reading cases about the summary assessment of costs. There is an example in the judgment of Senior Master Fontaine in Goodram & Anor v Camelot UK Lotteries Ltd [2020] EWHC…
THE APPROVAL OF SOLICITOR AND OWN CLIENT COSTS OF A PROTECTED PARTY AFTER SETTLEMENT: CLIENT NOT LIABLE TO PAY ANY FURTHER PROFIT COSTS; SUCCESS FEE REDUCED TO 15%
In BCX v DTA [2021] EWHC B27 (Costs) Costs Judge Brown reduced, substantially, the sums payable to solicitors from their own client. The judge was considering own client costs after the defendant had paid the bulk of the costs. It…
IS A CONDITIONAL FEE AGREEMENT UNENFORCEABLE IF THE SOLICITOR BREACHES THE CODE OF CONDUCT? MUCH TO THINK ABOUT?
The judgment of Mr Justice Trower in Winros Partnership v Global Energy Horizons Corporation [2021] EWHC 3410 (Ch) gives much for lawyers to think about. Here I want to concentrate on one element of that judgment- does a failure to…
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