CHANGES COMING INTO FORCE IN OCTOBER 2: NEW RULES AS TO COSTS BUDGETS
The 122nd update Practice Direction Amendments come into force on the 1st October 2020. Some of the changes relate to costs budgeting. We will look at these in more detail nearer the time they come into force. So that people…
COSTS ISSUES IN A CASE WHERE THE CLAIMANTS HAVE TO PAY £30 MILLION: WHY IT IS UNWISE TO BANK ON WINNING
A reminder of the sheer size, and major dangers, of group litigation can be seen in the judgment today in Sharp & Ors v Blank & Ors [2020] EWHC 1870 (Ch). The judgment relates to the costs of the action…
THE CAP ON RECOVERABLE COSTS OF COSTS BUDGETING IS EXCLUSIVE OF VAT: JUDGMENT TODAY
In Marbrow v Sharpes Garden Services Ltd [2020] EWHC B26 (Costs) Senior Costs Judge Gordon-Saker considered the issue of whether the cap on recoverable costs of the costs assessment process are inclusive, or exclusive of value added tax. (There are…
ASSESSMENT OF COSTS: UNDER SPEND OF A PHASE – NOT A GOOD REASON TO DEPART FROM THE BUDGET
In Utting v City College Norwich [2020] EWHC B20 (Costs) Master Brown rejected an argument that an “underspend” amounted to a good reason to depart from a budget. I am grateful to Paul Kay from R Costings for drawing this…
CORONAVIRUS CATCH UP 2: COSTS AND BUDGETING
Here there are short snippets of cases relating to costs decision in the past month or so which may have been displaced by the commentary on COVID-19. Rippon Patel And French LLP v Mowlam [2020] EWHC 1079 (QB) An…
CIVIL PROCEDURE AND COSTS: BLOG AND ARTICLES ROUND UP – MARCH 2020 (CORONAVIRUS FREE EDITION)
Links and articles to blog posts and articles available online in February 2020 (a separate post will deal with the many posts and articles last month on civil procedure and coronavirus). Costs Costs Barrister Hot air Costs Barrister Digital in design Association…
CHALLENGING COST BUDGET PHASES ON ASSESSMENT: DECISION TODAY: PARTY CHALLENGING BUDGETED PHASE HAS AN UPHILL TASK
My colleague Paul Hughes has provided a link to a judgment today of District Judge Lumb in the case of Chapman -v- Norfolk & Norwich University Hospitals NHS Foundation Trust, available here. The judgment considers the issue of when a…
INDEMNITY COSTS ON THE GROUNDS OF CONDUCT: FAILURE TO BEAT A DEFENDANT’S PART 36 OFFER: A GARDEN THAT GETS MORE AND MORE EXPENSIVE…
The Court of Appeal decision in Lejonvarn v Burgess & Anor [2020] EWCA Civ 114 is the second time this case, about a garden, has been on appeal. On this occasion the Court of Appeal held that the claimants’ conduct…
LATE COSTS BUDGET: RELIEF FROM SANCTIONS GRANTED: DEFENDANT DROPPED THE BALL BUT THIS WAS FORGIVABLE
In Manchester Shipping Ltd v Balfour Shipping Ltd & Anor [2020] EWHC 164 (Comm) Lionel Persey QC (sitting as a Deputy High Court Judge) granted relief from sanctions to a defendant who had filed a costs budget late. The case…
CIVIL PROCEDURE AND COSTS: BLOG AND ARTICLES ROUND UP – JANUARY 2020
Links and articles to blog posts and articles available online in January 2020 Costs Costs Barrister Conditional fee agreements and contentious business agreements Association for Costs Lawyers Oversight regulator praises CLSB’s “considerable progress” Association for Costs Lawyers Offer acceptanc… Enjoying this post? Become…
CIVIL PROCEDURE AND COSTS: BLOG AND ARTICLES ROUND UP – DECEMBER 2019
Links and articles to blog posts and articles available online from December 2019. Costs Costs Barrister Cash flow and catastrophic personal injury litigation Costs Barrister Fixed costs and translation fees Association for Costs Lawyers Court can order costs in foreign…
2019 AND CIVIL PROCEDURE – A ROUND UP OF THE ROUND UPS: WHAT TO FRET ABOUT AND WHAT NOT TO FRET ABOUT…
There have been a series of annual reviews on key topics throughout December. To round off the year it seemed a good idea to provide a reminder of them all and put the links in one place 2019 AND CIVIL…
2019 AND CIVIL PROCEDURE THE YEAR IN REVIEW: COSTS BUDGETING
This year has been relatively quiet on the costs budgeting front. There have been some rule changes and two cases which highlight how difficult it is to appeal a costs budgeting decision. JULY:AN OFFER AS TO COSTS DOES NOT BECOME…
CIVIL PROCEDURE BACK TO BASICS 75: COSTS BUDGETING: COUNSEL’S BRIEF FEE NOW PART OF THE TRIAL PREPARATION PHASE
Judging from the reaction of my opponent (and the judge) at a CCMC I attended today a change in the rules introduced on 1st October 2019 could benefit from wider publication. On the 1st October 2019 Counsel’s brief fee is…
PART 36: A SUCCESSFUL LITIGANT CAN BE BULLISH: CLAIMANT BEATS ITS OWN PART 36 OFFER AND THERE WAS NOTHING UNJUST IN THE DEFENDANT PAYING THE PRICE
In Kivells Ltd v Torridge District Council [2019] EWHC 3210 (TCC) the claimant beat its own Part 36 offer (by a fair margin). HHJ Russen QC rejected the defendant’s argument that it would be unjust to apply the normal Part…
AN UNSUCCESSFUL APPEAL ON A COSTS BUDGETING DECISION: SHOULD A QC BE ALLOWED – OR IS THAT A LEADING QUESTION?
The case of Easteye Ltd v Malhotra Property Investments Ltd & Ors [2019] EWHC 2820 (Ch) is unusual in that it is an appeal against a costs budgeting decision. Nugee J refused the claimant’s appeal against the District Judge’s decision…
CLAIMANT BEATS ITS OWN PART 36 OFFER: DEFENDANT PAYS THE PRICE: OFFER BEATEN BY £4,800 LEADS TO DEFENDANT PAYING AN ADDITIONAL £65,000 – & INDEMNITY COSTS, & ADDITIONAL INTEREST…
In Hochtief (UK) Construction Ltd & Anor v Atkins Ltd [2019] EWHC 3028 (TCC) Mrs Justice O’Farrell considered the consequences of a claimant being its own Part 36 offer. The claimant beat its own offer by a small amount but…
THE BACK TO BASICS SERIES: A RUNNING ACCOUNT: READ THEM ALL HERE
The “Back to Basics” series, as the title suggests, deals with some of the basic elements of civil procedure. It covers everything from applications and bundles to the taking of witness statements. The titles are often prompted by elements…
QUICK REMINDER OF NEW COSTS BUDGETING RULES COMING INTO FORCE TODAY: INCURRED COSTS INCLUDE THE COSTS OF THE CCMC
Part of the 109th update to the Civil Procedure Rules came into force today. A quick reminder that, from today, there is a change in the way that the courts approach the costs of the CCMC itself. INCURRED COSTS…
CIVIL PROCEDURE BACK TO BASICS 60: INTERIM ORDERS ON ACCOUNT OF COSTS: “CASH FLOW IS THE LIFEBLOOD OF BUSINESS”
Here we look at the rules relating to interim orders on account of costs, a subject of considerable importance in relation to practitioner’s cash flow and client’s pockets. CPR 44.2(8) “(8) Where the court orders a party to pay costs…
APPEAL ON COSTS BUDGETING : CLAIMANT’S APPEAL UNSUCCESSFUL: AN OFFER AS TO COSTS DOES NOT BECOME THE BENCHMARK FIGURE
In Gray v Commissioner of Police for the Metropolis [2019] EWHC 1780 (QB) Mr Justice Lambert dismissed the claimant’s appeal from cost budgeting decisions. The judgment contains important observations about the nature of cost budgeting hearings and appeals on…
CIVIL PROCEDURE BACK TO BASICS 50: THE POSTS SO FAR
The “back to basics” series has been going since April 2018. It has covered a surprising amount of topics. From how to draft an application to “litigation wishful thinking”. Some people have expressed surprise and how “basic” some points are…
RULE CHANGES (109): ELECTRONIC FILING, INCURRED COSTS AND THE CCMC, SMALL CLAIM HEARINGS IN PRIVATE
We are now on the 109th update to the Civil Procedure Rules. The three points I want to look at in particular are: mandatory electronic filing in the QBD; the costs of the CCMC being clearly categorised as incurred costs;…
A CAVALCADE OF COSTS CASES: HOLIDAY READING: SOMETHING TO CHEER UP COST LAWYERS OVER THE BANK HOLIDAY WEEKEND…
A number of costs cases have arrived on BAILLI all are decisions of Master Rowley relating to costs. EXCLUDING INTEREST ON COSTS MEANS THAT THIS IS NOT A PART 36 OFFER Ngassa v The Home Office & Anor [2018] EWHC…
NEW PRECEDENT R: STARTED TODAY (CONTAIN YOUR EXCITEMENT): USEFUL LINKS AND GUIDANCE
Credit to Costs Lawyer Jessica Swannell for reminding people on Linked In that the new Precedent R must be used from today. It is a good time to provide a link to the new form and some useful posts and…
tWENTY YEARS OF THE CIVIL PROCEDURE RULES: ALL THAT TIME AND THEY HAVE MADE FEW FRIENDS
I have already done a post on the 20th anniversary of the Civil Procedure Rules on the 26th April. In an effort to find supporters I tried again. The Civil Procedure Rules, it appears, has very few friends… …
DEPARTING FROM THE BUDGET: IMPORTANT DECISION ON APPEAL: JUDGMENT NOW AVAILABLE
Both Professor Dominic Regan and Acumension have kindly sent me copies of the decision in Barts Health NHS Trust -v-Salmon an appeal in relation to costs budgeting (HHJ Dight CBE, with Master Brown as an assessor, 17th January 2019). A copy…
“THE CLAIMANTS MUST RUE THE DAY THEY REJECTED THE DEFENDANT’S OFFER”: CLAIMANT TO PAY STANDARD COSTS AFTER REJECTING VERY EARLY PART 36 OFFER
The costs judgment in Burgess & Anor v Lejonvarn [2019] EWHC 369 (TCC) is probably a judgment that should be shown to all litigants. The claimant rejected an offer of £25,000 and failed to beat that offer at trial. The defendant’s…
UNANTICIPATED SIZE OF DISCLOSURE WAS AN “UNANTICIPATED DEVELOPMENT”: UPWARD REVISION OF COST BUDGET ALLOWED
In Al-Najar & Ors v The Cumberland Hotel (London) Ltd [2018] EWHC 3532 (QB) Master Davison allowed an upward variation of the cost budget. The scale of disclosure given by the defendant could not have been anticipated and it was reasonable…
BACK TO BASICS 19: COSTS BUDGETING WHEN CASE IS MORE THAN £25,000 BUT LESS THAN £50,000
There are special rules governing budgets in cases where the claimant claims more than £25,000 but less than £50,000. Firstly the budget has to be filed much earlier. Secondly the budget “must” only be the first page of Precedent H….
“THIS IS AN ARCHETYPAL CASE WHERE IT WOULD NOT BE APPROPRIATE TO GRANT RELIEF FROM SANCTIONS”: ANOTHER LATE COSTS BUDGET CASE
The judgment OF Mr Justice Bryan in BMCE Bank International Plc v Phoenix Commodities PVT Ltd & Anor [2018] EWHC 3380 (Comm) provides, as the judge noted, an archetypal example of the way not to go about cost budgeting, coupled with…
BACK TO BASICS 17: WHEN SHOULD A COST BUDGET BE FILED: WHERE THINGS GO WRONG
This may appear very basic. However I have seen both sides falling foul of this very recently. In particular the fact that the budget has to be filed with the directions questionnaire when the claim is limited to £50,000. THE…
COST BUDGETING: THE PARTIES MUST KNOW WHERE THEY STAND: LEAVING HOURLY RATES “OPEN” IS INAPPROPRIATE
I am grateful Sam Hayman from Bolt Burdon Kemp to for sending me a copy of the decision of Mr Justice Jacobs in Yirenki -v- Ministry of Defence [2018] EWHC 3102 (QB). The judge allowed an appeal against a cost budgeting…
SENIOR COURTS COSTS OFFICE GUIDE 2018
The new Senior Court Costs Office Guide has been published. This replaces the 2013 version with immediate effect. It is available on the link in the page here. The new guide Deals with all changes since 2013. Deals with the electronic…
SANCTIONS AND COSTS BUDGETS: A “PARTIAL” BUDGET DOES NOT COMPLY WITH THE RULES BUT A “PARTIAL” SUCCESS FOR THE CLAIMANT ON APPEAL
In the judgment today in Page v RGC Restaurants Ltd [2018] EWHC 2688 (QB) Mr Justice Walker allowed an appeal in relation to the sanctions imposed when a claimant failed to file an costs budget that complied with the rules. The…
PROPORTIONALITY: A LITIGATOR’S SURVIVAL GUIDE VIII: PROPORTIONALITY LEADS TO BASE COSTS BEING REDUCED FROM £115,906.00 TO £75,000
I am grateful to my colleague Robin Dunne for sending me a copy of the decision of HHJ Auerbach in Reynolds -v- One Stop Limited (21st September 2018). A copy of the judgment is available A79YM916 Reynolds v One Stop…
ISSUE BASED COSTS ORDERS: RELEVANT FACTORS INCLUDE CLAIMANT’S OFFER OF SETTLEMENT
The judgment in Welsh v Walsall Healthcare NHS Trust (Costs) [2018] EWHC 2491 (QB) is one of those “cut out and keep” judgments in that it contains a useful precis of all the relevant rules and principles relating to issue based…
ORDER FOR PAYMENT ON ACCOUNT OF COSTS CAN BE MADE LATE
In Culliford & Anor v Thorpe [2018] EWHC 2532 (Ch) HH Paul Matthews (sitting as a High Court judge) held that it was possible for the court to make an order for an interim payment of costs after the date on…
BACK TO BASICS 16: COSTS BUDGETING: THE GUIDANCE NOTES ON PRECEDENT H
There is much written about the process of costs budgeting. There is much to be said, when preparing for a hearing – and often at the hearing itself, looking at the Practice Direction and Guidance Notes. THE PRACTICE DIRECTION The…
THE ELECTRONIC BILL OF COSTS: UPDATE TO LINKS, INCLUDING GUIDANCE ON THE ENTIRE PROCESS
There has been much recent comment on the “success” (or otherwise) of the electronic bill of costs. This is a guide time to update the links to commentary and guidance on the process. RECENT COMMENTARY The New Law Journal…
COSTS BUDGETING AND PROPORTIONALITY: JUST THE TICKET: JUDGE REJECTS COMPARISON WITH DEFENDANT’S BUDGET WHEN IT “JUST DOES NOT MAKE SENSE”
The issue of costs budgeting and proportionality was considered by Mr Justice Birss in Red and White Services Ltd v Phil Anslow Ltd & Anor [2018] EWHC 1699 (Ch). The judge was prepared to take a robust approach to proportionality. There…
SOLICITOR AND CLIENT COSTS: A PRACTICAL GUIDE – BOOK REVIEW: BUY IT AND READ IT: £30 WORTH SPENDING
Disputes about costs between lawyers and their (former) clients can be “challenging”. Indeed they can be vitriolic and expensive. The lawyer thinking “We’ve done the work” – the client thinking “how much” and “I got nothing out of it, why…
WITNESS STATEMENTS AND COST BUDGETS: “THEY WILL HAVE BECOME AN ARTIFICIAL CONSTRUCT OF THE LAWYERS”
There are some interesting observations in the judgment of Chief Master Marsh in Various Claimants v MGN Ltd [2018] EWHC 1244 (Ch). The way in which a witness statement is likely to be drafted can be considered at the cost budget…
REDUCTION IN VALUE OF CLAIM AND REDUCTION IN HOURLY RATES DID NOT REPRESENT A GOOD REASON TO DEPART FROM THE BUDGET
In Jallow v Ministry of Defence [2018] EWHC B7 (Costs) Master Rowley rejected an argument that the settlement of a claim for a sum less than that claimed and a reduction in hourly rates for incurred costs represented “good reasons”…
THE JUDGMENT IN ALI -v- CHANNEL 5 3: WHY A DEFENDANT SHOULD ALWAYS FILE A COSTS BUDGET: A REMINDER OF THE RULES
The final part of this trilogy on the judgment today in Ali & Anor v Channel 5 Broadcast Ltd [2018] EWHC 840 (Ch) shows why the defendant will be kicking themselves for not filing a costs budget. Some defendants are fairly…
THE CLEVELAND BRIDGE CASE: A SECOND CROSSING: PAYMENTS ON ACCOUNT OF COSTS
Judgments dealing with payments on account of costs are rare, but illuminating. Particularly when the costs budget is taken as the starting point. There is a detailed consideration of this issue in Cleveland Bridge UK Ltd v Sarens (UK) Ltd [2018]…
HOURLY RATES, INCURRED COSTS AND THE COST BUDGET: AGREED BUDGETS HAVE NO SPECIAL STATUS: HOURLY RATES NOT A GOOD REASON TO DEPART FROM THE BUDGET
The judgment of Master Nagalingam in Nash v Ministry of Defence [2018] EWHC B4 (Costs) covers several issues relating to costs budgets. The Master found that a reduction in hourly rates in relation to incurred costs did not lead to any…
THE HOURLY RATE FOR INCURRED COSTS: WHY IT IS IMPORTANT THAT THESE ARE SET OUT CORRECTLY: HIGHER HOURLY RATES THAN THE RETAINER SHOULD START THE ALARM
I am grateful to Benjamin Petrecz, Associate and Costs Lawyer at Keoghs LLP, for bringing my attention to a decision of Master Rowley in Tucker -v- Griffiths & Hampshire Hospitals NHS Foundation Trust (19/05/17) in relation to costs budgeting. A…
THE COSTS OF MEDIATION AND THE COSTS BUDGET: AVOIDING A POSSIBLE TRAP
I am grateful to Alan Mendham for writing to point out a possible trap in relation to costs budgeting and mediation. Alan points out that disputes can arise as to whether mediation is included in the phase for settlement…
PROPORTIONALITY, CASES AND COMMENT: A ROUND UP
The post yesterday on the Brian May case and proportionality highlighted the fact that this is still a major issue in litigation. It is a good time to set out the posts on this blog on proportionality to date. PREVIOUS…
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