COSTS BUDGETING IS APPROPRIATE AND NECESSARY IN A HIGH VALUE CASE : BUT IT WAS NOT APPROPRIATE TO ORDER A SPLIT TRIAL
In Signia Wealth Limited -v- Marlborough Trust Company Limited [2016] EWHC 2141 (Ch) Chief Master Marsh considered two issues relating to case management: whether costs budgeting should apply and whether a split trial was appropriate. KEY POINTS Costs budgeting A…
FAILING TO FILE A COST BUDGET AND REFUSAL TO GRANT RELIEF FROM SANCTIONS: A HARSH LESSON
If a litigation solicitor is ever given the job of designing wallpaper here are the three key things that should form the recurring motif. The costs budget is due 21 days before the first case management conference. Where the claim…
COSTS BUDGETING – THE KEY DATES: A QUICK REMINDER TO AVOID A SHARP (BUT NOT NECESSARILY SHORT) SHOCK
You would think that everyone involved in litigation would know that new rules as to cost budgeting came into force on the 6th April 2016. However, judging from some of the blank (and worried) looks I have seen recently when…
NEW RULES ON COSTS CAPPING
New rules (The Civil Procedure (Amendment No.2) Rules 2016 were passed yesterday which amend CPR Part 3 in relation to costs capping. They are of relatively limited ambit, applying only to Judicial Review applications. They replace protective costs orders in…
COSTS BUDGETING & DAVID -v- GOLIATH: DOES IT GIVE THE "LITTLE GUY" A CHANCE?
Costs budgeting remains highly controversial. One question that is open to debate is – is it useful? Its utility may be most apparent in cases where the sizes and resources of the litigants are vastly disparate. (Many personal injury lawyers…
PROPORTIONALITY II (THE EXTENDED ALBUM EDITION)
The earlier post on the decision in Dr Brian May -v- Wavell Group Plc [2016] EWHC B16 (Costs) outlined the decision in summary. This is a case that justifies an extended examination. REPRISE Following acceptance of the defendant’s Part 36 offer of…
OVERSPENDING ON YOUR COSTS BUDGET? BETTER TELL YOUR CLIENT
Way back in the mist of time (that is post-Mitchell, pre-Denton) I reported a decision of District Judge Lumb on sanctions and costs budgeting. That particular post was then plagiarised without any reference to me (matters were resolved amicably). However…
"THAT PROPORTIONALITY JUDGMENT": 10 KEY POINTS
The post yesterday on the decision of Master Gordon-Saker in BNM -v-MGN Limited [2016] EWHC B13 (Costs) set out the case in some detail. Here are the key points of that decision. KEY POINTS On an assessment of costs on…
PROPORTIONALITY CONQUERS ALL? PROFIT COSTS (AND COUNSEL'S FEES) HALVED
The decision of Master Gordon-Saker in BNM -v-MGN Limited [2016] EWHC B13 (Costs) has already received widespread publicity. The principle of proportionality was used to halve profit costs and counsel’s fees and make a substantial reduction on the insurance premium….
IT'S NOT JUST WINNING BUT HOW YOU PLAY THE GAME: COSTS ORDERS WHEN BOTH PARTIES ASSERT THAT THEY HAVE "WON"
In Milanese -v- Leyton Orient Football Club Limited [2016] EWHC 1263 (QB) Mrs Justice Whipple considered issues relating to costs after a case in which each party claimed to have won. “I remind myself that this is an area where…
WHAT IS MEANT BY A "SIGNIFICANT DEVELOPMENT"? AMENDING THE COSTS BUDGET WHEN CLAIM DOUBLES IN SIZE: CLAIMANT GETS THE BOOT
I am grateful to barrister Colm Nugent for his notes of the decision of Mr Justice Picken in Churchill -v- Boot (22/04/2016) in relation to costs budgeting (a summary of this case is also available on Lawtel). KEY POINTS A…
NEW RULES AND PRACTICE DIRECTIONS TOMORROW: THE TRANSITIONAL PROVISIONS
Following the post about the rule changes coming into force tomorrow there was some discussion about the transitional provisions. The confusion comes about partly because the SI introducing them says the same thing in different ways. However further confusion arises…
RULE CHANGES COMING INTO FORCE: 48 HOURS TO GO
A short, but timely, reminder that new rules come into force on the 6th April 2016. These include: No costs budgeting where the claim is brought on behalf of a child. Normally no costs budgeting when the claimant has limited…
COSTS BUDGET SERVED LATE: RELIEF FROM SANCTIONS ALLOWED ON APPEAL
In a judgment given today His Honour Judge Peter Gregory allowed an appeal against a decision to confine a claimant’s costs budget to court fees following late service of the costs budget. The case indicates that a more nuanced approach…
COSTS BUDGETING: PROPORTIONALITY; CITY FIRMS & COUNSEL WHEN THERE IS £16 MILLION AT STAKE
The judgment today of Mr Justice Morgan in Group Seven Limited -v- Nasir [2016] EWHC 629 (Ch) provides some interesting observations in relation to costs budgeting. It demonstrates that issues of proportionality are important even in a case where £16…
COSTS, FIXED COSTS AND COSTS BUDGETING WHEN MAKING AN INTERIM ORDER: ALL IN THE PINK
The decision of Mr Justice Birss in Thomas Pink Ltd -v-Victoria’s Secret UK Limited [2014] EWHC 3258 has only recently been posted on Bailii. However it contains an interesting example of the court considering the issue of costs, fixed costs…
CHANGES TO COST BUDGETING RULES: KEY DATES AND TIMES
The previous post looked at the changes to costs budgeting coming into force on the 6th April. Here is a list of the key dates and times. These are key dates in litigation and the sanction for failing to…
IMPORTANT CHANGES TO COSTS BUDGETING: THE KEY POINTS
New rules in relation to costs budgeting come into force on the 6th April 2016. They apply to proceedings commenced on or after 6th April 2016. EXEMPTION FOR CHILDREN 5. In rule 3.12(1), for subparagraph (c), substitute— “(c) where in…
TEN NEW YEAR'S RESOLUTIONS FOR LITIGATORS IN 2016
Some resolutions to keep you prosperous and out of difficulties in 2016. (Happy New Year) 1. NEVER, EVER, GUESS ABOUT A LIMITATION PERIOD (OR TAKE A CLIENT’S WORD FOR IT) Litigators of all types must have a clear idea about…
CIVIL LITIGATION REVIEW OF 2015: POETRY, CARPET BOMBING AND DISAPPEARING EXPERTS
We civil litigators cannot be left out of the, apparently universal, need for an annual review. The annual review last year was headed with the words “prolixity”, “sanctions” and creative writing. Here we look at poetry, carpet bombing and disappearing…
COSTS BUDGETING, PROPORTIONALITY AND GROUP LITIGATION
In Various Claimants -v- Sir Robert McAlpine & others [2015] EWHC 3543 (QB) Mr Justice Supperstone (sitting with Master Leslie & Chief Master Gordon Saker) considered costs budgeting within a Group Litigation Order. “Recognising that this is a complex case…
NO INDICATIONS GIVEN FROM TRIAL JUDGE IN RELATION TO EXCEEDING COSTS BUDGET: THE APPROPRIATE APPROACH TO INTERIM COSTS WHERE THE COSTS HAVE EXCEEDED THE COSTS BUDGET
Can (and should) the trial judge give any indication in relation to costs budgets at the end of a trial if the costs budgets have been exceeded. Further what is the appropriate approach to an application for interim costs when…
DAMNED IF YOU DO: DAMNED IF YOU DON'T: AGREEING COSTS BUDGETS AND COMPLYING WITH THE OVERRIDING OBJECTIVE
“Are lawyers colluding on fees?”, asked Rachel Rothwell in the Law Society Gazette yesterday. Rachel was reporting on a concern, albeit a low key one expressed by some judges that parties are “colluding” to keep their fees high in costs…
"HOW TO GET SUED, MAKE A LOSS AND BE MISERABLE": 22nd SEPTEMBER 2015: HARDWICKE BUILDING, LONDON: RAISING FUNDS FOR THE BILLABLE HOUR
LITIGATORS: HOW TO GET SUED: MAKE A LOSS AND BE MISERABLE RAISING MONEY FOR THE BILLABLE HOUR APPEAL (ALL PROCEEDS GO TO THE APPEAL) Gordon Exall and PJ Kirby QC. Hardwicke Building, Lincoln’s Inn. TUESDAY 22nd SEPTEMBER 2015 5.30 -…
ORDERING SECURITY FOR COSTS, THIRD PARTY ACTIONS AND THE COSTS BUDGET
How important is an approved costs budget in determining the sum to be ordered by way of security for costs? This was an issue considered by Mr Justice Andrew Smith in Sarpd Oil International Ltd -v- Addax Energy [2015] EWHC…
ESSENTIAL READING: "FEES A CROWD WHEN JUSTICE AND POLITICS COLLIDE": A NLJ & LSLA PUBLICATION
There is a section on this blog devoted to links to posts on procedure and costs. Occasionally, however, a post is so important that I feel compelled to draw attention to it. This definitely applies to the publication “Litigation Trends…
OUCH! THINKING OF DRAFTING A COSTS BUDGET? BEST READ THIS FIRST
The judgment of Mr Justice Stuart-Smith in GSK Project Management Ltd -v- QPR Holdings Ltd [2015] EWHC 2274 (TCC) is one that needs to read by anyone involved in preparing a costs budget. To say the judge was critical of…
NEW RULES RELATING TO "NEUTRAL EVALUATION" ; LITIGANTS IN PERSON; ASSESSMENT; SPECIALIST FINANCIAL LIST (AND MORE…)
New rules have been introduced which (for the most part) come into force on the 1st October 2015. Here we look at the key changes. THE RULES The Civil Procedure (Amendment No.4) Rules 2014 were laid before Parliament on the…
STRIKING OUT WITNESS STATEMENTS BECAUSE OF IRRELEVANT MATERIAL AND "SIGNIFICANT DEVELOPMENTS" IN RELATION TO CHANGES OF COSTS BUDGETS
The Mitchell libel case led to a number of interlocutory hearings and applications, some of which had a profound effect on civil procedure (for a while at least). The case of Yeo -v- Times Newspapers Ltd is also leading to…
HOW TO GET SUED, MAKE A LOSS AND BE MISERABLE (2015 EDITION): LEEDS 30th JUNE 2015
If you are a litigator and feeling happy, confident and have no concerns at all about getting things wrong, being sued or making a loss, then something may be missing from your life. TO MAKE YOUR LIFE COMPLETE Come to…
A SORRY TALE OF MODERN LITIGATION: ALL AROUND THE HOUSES
There are some cases where the “reasonable bystander” may feel that all rationality has been lost by the litigants. Read the opening paragraph of Mr Justice Akenhead’s judgment in Mears Ltd -v- Shoreline Housing Partnership Limited [2015] EWHC 1396 (TCC)….
CASE PROJECT MANAGEMENT: PRESENTATION BY H.H. JUDGE SIMON BROWN QC.
Attached to this post – Case Project Management (1) – are the slides that HH Judge Brown used in his recent address on Case Project Management to the Association of Cost Lawyers. Reproduced with his permission. KEY POINTS The slides take…
COSTS OF EXPERTS AND GOING OUTSIDE THE COSTS BUDGET: THE HIGH COURT REFUSES TO EXTEND BUDGETED ITEMS AFTER A TRIAL
In Parish -v- The Danwood Group Ltd [2015] EWHC 940(QB) HH Judge Behrens (sitting as a judge of the High Court) considered various issues relating to the costs budget at the end of a trial. THE CASE The claimants were…
MITIGATING THE IMPACT OF THE COURT FEE INCREASE 3: ONLY CLAIM WHAT ITS WORTH AND WHAT YOU ARE GOING TO GET
This is the third in the series on mitigating the effect of court fees. The new fees regime makes clear the need for as much accuracy as possible in assessing what the likely award is going to be. An additional…
TAKING A DIM VIEW OF THE COSTS BUDGET: STRONG WORDS FROM THE TCC: THE PRACTICAL CONSEQUENCES OF OVERBLOWING THE BUDGET
In CIP Properties (AIPT) Limited -v- Galliford Try Infrastructure Ltd [2015] EWHC 481 (TCC) Mr Justice Coulson had strong words to say about the reliability, reasonableness and proportionality of the claimant’s costs budget. The judge was faced with a very…
MORE ON INDEMNITY COSTS AND THE SUMMARY ASSESSMENT OF COSTS AT TRIAL: INTERCITY TELECOMS -v- SOLANKI
NOTE THAT THIS JUDGMENT HAS BEEN OVERTURNED BY THE COURT OF APPEAL, SEE THE POST HERE In Intercity Telecom -v- Solanki [2015] Judge Simon Brown QC awarded indemnity costs and assessed costs at the end of a trial. It is…
IF YOU THINK "BIG MONEY" CASES AMOUNT TO A LICENCE TO INCUR COSTS THEN READ THIS
In Kazakhstan Kagazy PLC -v- Baglan Abdullayevich Zhunus [2015] EWHC 404 (Comm) Mr Justice Leggatt makes important observations about costs; the basis for assessing costs in “big money” cases (if not all cases) and interim costs in a case where the defendants’…
MORE ON SUMMARY ASSESSMENT OF COSTS & PROPORTIONALITY: NOT GOING FOR A SONG
The issue of proportionate costs was considered by Judge Behrens in Taylor -v- Bell & Haworth (16th February 2015). It provides a useful example of judicial comments in relation to disproportional costs. THE CASE The applicant was seeking a variation of…
JOINDER OF A PARTY FOR COSTS, INDEMNITY COSTS & COMMENTS ON COSTS OUTSIDE THE COSTS BUDGET: EXCELERATE TECHNOLOGY ROUND 2
We looked earlier at the observations on costs in giving judgment in Excelerate Technology Ltd -v- Cumberbatch [2015] EWHC B1 Mercantile. A supplementary judgment on the costs issues is now available. It contains the rationale for the matters discussed in the…
EARLY CONTENDERS FOR WORST PUNS ON CIVIL CASES 2015: YOU JUDGE THE STANDARD
In the annual review of civil litigation of 2014 there was an easy winner for the case that gave rise to the most, and worst, puns. There is an early contender for this award in 2015. Since this competition is…
GUIDANCE GIVEN AS COSTS BUDGETING IN PRACTICE: CONTINGENCIES, RATES AND TIMING: YEO -v- TIMES NEWSPAPERS LIMITED
The judgment of Mr Justice Warby in Tim Yeo MP -v- Times Newspapers Limited [2015] EWHC 209 (QB) contains some interesting observations in relation to pleading allegations of fraud. However here we look at the judge’s observations in relation to…
PRELIMINARY APPLICATIONS: DEPARTING FROM COST BUDGETS AND FAILURE TO SERVE COST SCHEDULES: A HIGH COURT DECISION
In Simpson -v- MGN Limited [2015] EWHC 126 (QB) Mr Justice Warby considered several contentions in relation to costs budgeting; non-service of costs schedules and proportionality. This is, again, a case that serves as an object lesson as to the…
APPEALING COSTS BUDGETS: THE RELEVANT CRITERIA CONSIDERED AND APPLIED
The decision of H H Judge Freedman in Havenga -v- Gateshead NHS Foundation Trust [2014] EWHC B25(QB) demonstrates how difficult it is for a party to appeal a costs budget. THE CASE The claimant was bringing a claim for hemiplegic…
THE DANGERS OF A PART 36 OFFER: CLAIMANT PAYS THREE TIMES MORE IN COSTS THAN HE RECEIVED IN DAMAGES
The dangers of a claimant rejecting a Part 36 offer are clearly demonstrated in the case of UWUG Ltd & Haiss -v- Ball [2015] EWHC 74 (IPEC). The claimant received damages of £2,859.20 but was ordered to pay the defendant…
COSTS AT THE END OF THE CASE: THE JUDGE CAN MAKE OBSERVATIONS ABOUT MATTERS OUTSIDE THE COSTS BUDGET
The judgment of H.H. Judge Simon Brown Q.C in Excelerate Technology Ltd -v- Cumberbatch [2015] EWHC B1 Mercantile contains some interesting observations at the end. This illustrates the need for trial counsel to be aware of both the costs budget…
LET THE COURT KNOW HOW MUCH AN EXPERT IS GOING TO COST: A MANDATORY REQUIREMENT
The short judgment of Mr Justice Warby in Sloutsker -v- Romanova [2015] EWHC 81(QB) contains some important observations about preparing for hearings. It also serves as a timely reminder that a party asking for permission to instruct an expert must…
COSTS REDUCED FROM £201,000 TO £96,465 ON SUMMARY ASSESSMENT: A WORKING EXAMPLE OF PROPORTIONALITY IN PRACTICE
It is always useful to look at the way in which courts are carrying out summary assessments. Another interesting example of the pragmatic approach adopted can be found in the judgment of Mr Justice Akenhead in Savoye -v- Spicers Ltd…
RECEIVERS, EXTENSIONS OF TIME AND RIGOROUS COSTS BUDGETING TO ENSURE PROPORTIONALITY
The Denton principles were considered by Mr Registrar Jones in Justice Capital Ltd -v- Murphy [2014] All ER (D) 187 (Dec). There were important issues in relation to proportionality and costs. Of particular interest is the rigorous case management and…
THE LORD CHIEF JUSTICE'S REPORT 2014: CIVIL JUSTICE
The Lord Chief Justice’s Report for 2014 is available online. It covers many aspects of the judicial system. Here we look at the report in relation to civil justice, THE REPORT On civil justice the Report identifies 5 key areas:…
THE NEW PART 36: PART 10: PULLING IT ALL TOGETHER: 18 KEY POINTS
This post provides a summary of the changes to Part 36 and then considers the practical implications of the new rules, including the implications for on-going litigation. There are links to the relevant posts on the issue and a summary…
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