COST BITES 294: “A DETAILED ASSESSMENT IS NOT THE FORUM TO RESCUE OR TO ATTEMPT TO CHANGE THE EFFECT OF A POORLY WORDED ORDER”: THE COURT WOULD NOT CONSIDER ASSERTIONS OF POTENTIAL FUNDAMENTAL DISHONESTYOF THE PRIMARY ACTION ON ASSESSMENT
Here we are looking at an attempt by a paying party defendant to raise issues of conduct, including potential fundamental dishonesty, at the assessment of costs stage. The defendant argued (or attempted to argue) that the costs judge should take…
COST BITES 293: AN EXAMPLE OF AN ASSESSMENT OF A SUMMARY ASSESSMENT (AND COSTS BEING REDUCED) WHEN THE OPPOSING PARTY WAS NOT PRESENT
The periodical reminder that this series is aimed at looking at what goes on “on the ground” in the world of costs, in addition to looking at important developments in case law. It is to allow litigators to gain “a…
ISSUING AN INJUNCTION MEANS “PROCEEDINGS” ARE UNDERWAY AND THE CLAIMANT HAS TO PAY THE COSTS AFTER IT WAS SET ASIDE: ALLOWING THE CLAIMANT’S ARGUMENTS IN THIS APPEAL WOULD BE AN “AFFRONT TO COMMONSENSE”
Here we look at an ingenious argument about the meaning of “proceedings” and the costs consequences if a claimant has an injunction order set aside. The claimant argued that the nature of the action he pursued did not amount to…
COST BITES 292: AN EXAMPLE OF THE TRIAL PREPARATION AND TRIAL PHASE BEING BUDGETED (OH – AND COUNSEL DOESN’T GET A REFRESHER FOR A JUDICIAL READING DAY)
We continue to look at the case considered in the previous post. Having made the point that the budget is not so much about hourly rates but about the reasonableness and proportionality of the figures as a whole the judge…
THE “CONDUCT OF LITIGATION” CASE CONTINUED: WHY THE CIRCUIT JUDGE ERRED AS TO COSTS: FIXED COSTS APPLIED IN ANY EVENT
We are returning to a case we have looked at several times already. This time on the question of costs. Since the appellants were successful the costs order against them was overturned. However it was held that the judge erred…
COST (MEGA) BITES 286: AND YOU SAID THAT WITH AN “ADMIRABLY STRAIGHT FACE”: “OVERLAWYERING” CONSIDERED IN AN EXHAUSTING CASE
We are looking at a case that has already been subject to several posts on this site. In the previous decision about budgeting the claimants’ budgets were described as “absurdly high” and the arguments “strains all credulity”. The court is…
COST BITES 285: DOES THE COURT NEED TO VARY THE RECEIVING PARTY’S BUDGET WHEN IT HAS ORDERED THAT COSTS BE PAID ON AN INDEMNITY BASIS?
We are looking again at the award of indemnity costs. The judge ordered that costs be paid to the claimant on the indemnity basis. He then went on to consider whether, given that decision, it was necessary to retrospectively vary…
COST BITES 284: DEFECTIVE WITNESS STATEMENTS PLAY A PART IN A DECISION TO AWARD INDEMNITY COSTS: “DEPRIVING THE DEFENDANT OF THE USUAL RIGHT NOT TO PAY DISPROPORTIONATE COSTS, IS AN ENTIRELY PROPORTIONATE RESPONSE TO THE DEFENDANT’S CONDUCT OF THIS ACTION”
Here we look at a judgment where indemnity costs were awarded against an unsuccessful defendant. As we shall see there were a number of factors in that decision. However it is notable that, in both judgments, the judge commented on…
COST BITES 283: “A SIGNIFICANT NUMBER OF THE POINTS OF DISPUTE WERE DISMISSED”: NOT ENOUGH DETAIL, FAILING TO DISTINGUISH BETWEEN STANDARD AND INDEMNITY BASIS COSTS
We are looking at a different aspect of the case we have already looked at this morning. However the paying party in that case to some extent where the authors of their own misfortune. In particular the judge held that…
THE CIVIL LITIGATION BRIEF TOOLBOX SERIES 2: WHERE DO YOU LOOK WHEN FACED WITH AN ARGUMENT ON ASSESSEMENT THAT COSTS SHOULD BE REDUCED BECAUSE OF “PROPORTIONALITY”?
The principles considered here work for both sides. Where does a receiving party look when the paying party wants to reduce costs because of “proportionality”? Where does a paying party look to gain guidance on such issues. I am here…
COST BITES 282: PROPORTIONALITY OF COSTS CONSIDERED AFTER A LINE BY LINE ASSESSMENT: TAKE YOUR SEATS FOR A CASE ABOUT THE ALBERT HALL…
I am grateful to my colleague Paul Hughes for bringing my attention to this decision of the SCCO in relation to proportionality. It is a case where the paying party specifically raised proportionality as a further and specific issue after…
CIVIL PROCEDURE BACK TO BASICS 106: WHEN IS VAT ON LEGAL COSTS RECOVERABLE FROM THE OTHER SIDE ON ASSESSMENT?
Yesterday we looked at a case where a receiving party accidentally included a claim for VAT in a bill of costs. The error was noted, after being queried by the judge, however the judge went on to state ” I…
COST BITES 280: THE PERILS OF INCLUDING A VAT IN A BILL BY MISTAKE: THE COURT WOULD NOT DEPART FROM THE GUIDELINE RATES: NEVERTHELESS £202,000 ALLOWED ON ASSESSMENT FOR A ONE DAY APPEAL
We are looking at a case where the judge summarily assessed costs with no input from the paying party. The receiving party had made a mistake by claiming VAT (something only appreciated when the judge raised the question). There was…
COST BITES 279: COSTS AWARDED IN WHAT IS NORMALLY A “NO COSTS” JURISDICTION: THE FIRST TIER TRIBUNAL (PROPERTY CHAMBER)
It is worthwhile taking a look at cases where costs are awarded in cases where there normally would be no inter party order for costs. We look at such a case here, in the First Tier Tribunal. On appeal to…
ATTENDANCE NOTES IN CIVIL LITIGATION 2025: WEBINAR 15th SEPTEMBER 2025
There have been at least three cases over the previous few months where attendance notes taken by solicitors have played a significant part in the outcome of a case, appeal or application. These notes protected a solicitor against complaints of…
COST BITES 278: HOURLY RATES OF £685(GRADE A) AND £420 (GRADE C) ALLOWED: A SUMMARY ASSESSMENT IN ACTION
One of the aims of this series is to look at how costs awards are being made in practice. What is happening “on the ground” is important, if not essential, knowledge for working litigators. Here we look at a summary…
COST BITES 277: WHEN A CLIENT CHALLENGES A SOLICITOR’S BILL BUT IS OUTSIDE THE TIME PERIODS FOR CHALLENGE IN THE SOLICITORS ACT: THE RESIDUAL ISSUE OF COSTS BEING REASONABLE AND THE COMMON LAW ASSESSMENT
Here we are looking at a case that reminds us that a client’s ability to challenge the reasonableness of solicitor’s costs can go outside the Solicitors Act. Even when the time for challenging the bill has passed the court can…
COST BITES 276 : A SUMMARY ASSESMENT IN ACTION: COSTS AFTER AN ARGUMENT ABOUT COSTS… THE COURT WOULD NOT IMPOSE A COSTS CAP – LOWER THAN THE FIGURE ARGUED FOR ON APPEAL
Here we are looking a a summary assessment of costs following an appeal that was all about costs. The are a number of issues of interest here: the hourly rates, time spent and use of Leading Counsel are considered. Further…
COST BITES 275: APPELLANT SUCCESSFUL IN PUTTING LOCAL AUTHORITY RECEIVING PARTIES TO THEIR ELECTION IN RELATION TO CCFAS
It may be a matter of comment when the suspicion arises that the costs of arguing about costs exceeds the initial costs in dispute. I suspect that may be the case in many cases in this series (indeed people have…
COST BITES 272: CLAIMANTS ORDERED TO PAY SOME OF A DEFENDANT’S COSTS IMMEDIATELY, PRIOR TO JUDGMENT BECAUSE OF THE WAY IN WHICH THE TRIAL WAS CONDUCTED
Last week we had a judge discussing the “pay as you go” principle in litigation. Here we have a slight extension of that principle with the judge deciding that the claimants’ conduct of the the trial meant that they should…
COST (MEGA) BITES 370 : WE WANT AN INTERIM PAYMENT ON COSTS OF £3.75 MILLION – BUT WE DON’T WANT TO GIVE A DETAILED BREAKOWN OF WHY: COURT OF APPEAL CONSIDERS THE ISSUES
It is rare for the Court of Appeal to give a detailed judgment on costs. It is even rarer for it to consider the principles relating to interim payments on account of costs. This is what we are looking at…
COST BITES 269: CAN PRE-ALLOCATION COSTS BE AWARDED WHEN A CASE IS LATER TRANSFERRED TO THE SMALL CLAIMS TRACK? A CASE THAT CONSIDERS THE ISSUE
I am grateful to barrister Ethan Riley for sending me a copy of the transcript of the judgment we are looking at today. This relates to whether the court has power to award a party pre-allocation costs that are occurred…
COST BITES 269: WHAT COSTS ORDERS SHOULD BE MADE WHEN THE CLAIMANTS AVOID STRIKING OUT BY AMENDING THEIR PLEADINGS, BUT THE DEFENDANT OPPOSED THE APPLICATION TO AMEND? LITIGATION ON A “PAY AS YOU GO” BASIS
If ever a judgment showed how difficult litigation can be it is the costs decision we are looking at here. A defendant made an application to strike out a case on the grounds of inadequate pleadings. That application would, without…
COST BITES 268: NO STAY OF AN ORDER THAT A SOLICITOR RESPOND TO PART 18 QUESTIONS: A COSTS ASSESSMENT IN ACTION
It is always interesting when we get to see “round 2” of a decision in relation to an application and appeal. It is even more interesting when we see the costs orders made and the figures involved. This case has…
COST BITES 267: WHAT IS THE COURT’S APPROACH WHEN IT DETERMINES THAT A RECEIVING PARTY SHOULD NOT HAVE INSTRUCTED LEADING COUNSEL?
Here we have a consideration of what the court’s approach on summary assessment when it considers that leading counsel should not have been instructed. (Silk worms at work. They did not weave their magic when it came to the assessment…
COST BITES 266: WHAT DOES THE COURT DO IF THE COSTS ARE DISPROPORTIONAL AFTER A LINE BY LINE ASSESSMENT? A WORKING EXAMPLE
Here we look at a judgment relation to proportionality and the assessment of costs. The claimant’s costs had been substantially reduced after a three day assessment but the judge found that the total sum was still disproportional. The judge could…
COST BITES 266: THE DEFENDANT WHO OBTAINED AN ORDER FOR INDEMNITY COSTS IN HER FAVOUR AND STILL ENDED UP CONSIDERABLY OUT OF POCKET: PART 36 OFFERS IN THE ASSESSMENT PROCESS: PLUS – “COSTS CAPPING” CONSIDERED – AND REFUSED
We are looking at a case where a defendant successfully defended an application to commit, was awarded indemnity costs and yet ended up considerably out of pocket. It shows the importance of a well judged Part 36 offer by the…
COST BITES 265: THE PERILS OF WORKING UNDER A CFA: THE COSTS JUDGE CORRECTLY ASSESSED COSTS AT NIL: THE DEFENDANT WAS ENTITLED TO TAKE A POINT THAT WAS NOT TAKEN AT AN EARLIER HEARING: THEY WERE SIMPLY FOLLOWING THE COURT’S ORDERS
Here we have a case that could well bring tears to the eyes of any litigator who works on a conditional fee basis. For the second time, on appeal, the claimant solicitor’s costs have been unsuccessful. The defendant former client…
COST BITES 264: WHEN SHOULD A CASE BE REFERRED TO DETAILED AS OPPOSED TO SUMMARY ASSESSMENT? PERHAPS WHEN THE SOLICITORS ARE SEEKING £1,345.50 AN HOUR…
It is rare to see costs issues, initially suitable for summary assessment, referred for detailed assessment. We have such a case here. The judge decided that the issues, and in particular the hourly rate for solicitors sought by the receiving…
COST BITES 261: HOW MUCH DID THAT (UNSUCCESSFUL) APPLICATION TO AMEND COST? SOME £616,000 APPARENTLY…
Here we are looking at the award of costs following the judgment considered in the previous post. The applicants had, they said, incurred £435,000 in costs, the respondents sought £181,374.28. For the most part the judge rejected the applicants’ submissions…
NEW RULES COMING INTO FORCE ON THE 12TH SEPTEMBER 2025 AND THE 1ST OCTOBER 2025 (1): COSTS
Here we look at the latest statutory instrument which makes changes to the rules. We are starting by looking at the changes in relation to the rules relating to costs. These provisions come into force on the 1st October 2025….
COST BITES 259: COSTS FOLLOWING AN APPEAL : SHOULD COSTS BE ON THE INDEMNITY BASIS? WAS THIS A “HEAVY” CASE? SUMMARY ASSESSMENT IN ACTION
It is always interesting to look at the awards that are actually made following an assessment of costs. Whilst each case is fact specific it is possible for litigators to pick up important points. Here we have a consideration of…
COST BITES 260: THE “CLIENT” WAS NOT LIABLE TO PAY THE SOLICITORS BILLS : EACH ENTITY PUT IN ITS TIME AND EFFORT AT ITS OWN RISK
Today we are looking at a highly unusual solicitor and own client costs assessment. After hearing evidence over five days the judge decided that there was no retainer between the “client”and the solicitor. The client was not liable to pay…
WHEN ARE THERE GOOD REASONS NOT TO ORDER A PAYMENT ON ACCOUNT OF COSTS? WHAT IS A “REASONABLE FIGURE” FOR SUCH PAYMENT? THE ISSUES CONSIDERED IN THE HIGH COURT
When a party loses an application or a case and costs are not assessed immediately then the general principle is that the paying party will be ordered to pay “a reasonable sum on account of costs”. Here the court considered…
COST BITES 257: SOLICITOR AND OWN CLIENT ASSESSMENTS AND “UNUSUAL COSTS”: WHY THE ATTENDANCE NOTE IS OFTEN THE SOLICITOR’S BEST FRIEND
A solicitor is under a specific duty to warn the client when “unusual costs “are being incurred, particularly those costs that may be irrecoverable on an inter party basis. Here we have an example of a (former) client asserting that…
COST BITES 254: DOES YOUR CLIENT HAVE CAPACITY? AN IMPORTANT POINT WHEN CONSIDERING THE VALIDITY OF THE RETAINER: AN ISSUE CONSIDERED IN THE SCCO TODAY
It is rare for issues of capacity to considered on an assessment of costs. However that is precisely the issue considered in this case. If the defendant established he did not have capacity when he entered into a retainer with…
COST BITES 253: COURT OF APPEAL ALLOW APPEAL IN HOLCROFT -V- THORNEYCROFT SOLICITORS – BY CONSENT: AN “AGREEMENT” AS TO THE DEDUCTION OF COSTS DOES NOT PREVENT A SOLICITORS ACT ASSESSMENT
The case of Holcroft -v- Thorneycroft has been discussed on this site in the past. The Court of Appeal has allowed an appeal, by consent, setting aside the original orders and directing that the defendants pay the costs of the …
SHOULD THE DEFENDANT PAY COSTS IMMEDIATELY AFTER A SPLIT TRIAL? THE “MEAN FIDDLER” CONSIDERED IN DETAIL
For the second time within a few weeks we are looking at a case where the judge had to consider whether to make a costs order following a claimant being successful after a split trial. Here the judge took a…
COST BITES 252: WHEN CAN A SOLICITOR PROPERLY TERMINATE A RETAINER? WAS THE CLIENT “THROWN TO THE LIONS”?
Here we are looking at a very small part of a judgment in relation to costs on a solicitor/own client assessment. On of the arguments put forward by the (former) client was that the retainer was wrongfully terminated shortly before…
COST BITES 251: POINTS OF DISPUTE MUST BE PROPERLY PARTICULARISED OR THEY WILL BE STRUCK OUT: HIGH COURT DECISION TODAY CONSIDERED
There have been a number of cases now where the courts have considered the obligations on a party filing Points of Dispute to a bill of costs. In particular the need to be particular. Those obligations are considered in detail…
COST BITES 250: SHOULD THE CLAIMANT’S SOLICITOR BE ENTITLED TO RECOVER A FULL SUCCESS FEE AND THE ATE PREMIUM? A DECISION MADE ON APPEAL
We are looking at a decision made on appeal in relation to the very common issue of the percentage of a success fee and the taking out, and subsequent deduction from damages, of an After the Event Insurance policy. The…
YOU ARE NOT GOING TO GET PAID FOR RECTIFYING YOUR OWN DEFECTIVE WITNESS STATEMENTS: WHY NON-COMPLIANCE WITH PD57AC CAN BE EXPENSIVE
Here we have a case where a claimant was seeking to recover the costs of preparing defective witness statements. The court had ordered that compliant witness statements be filed. Should the claimant be entitled to recover the costs of preparing…
COST BITES 249 : SHOULD A COSTS ORDER BE STAYED? SHOULD THE DEFENDANT BE ORDERED TO PAY COSTS? LOOKING AT A SUMMARY ASSESSMENT IN ACTION: ARE THE COSTS DISPROPORTIONAL
Continuing with the aim of looking at what is going on “on the ground” in relation we look at a short but interesting judgment that encompasses many aspects of costs. Should the court order a stay pending a possible appeal?…
COST BITES 247: SHOULD A SOLICITOR RESPOND TO PART 18 QUESTIONS ABOUT THE PAYMENT OF COMMISSION? THE HIGH COURT CONSIDERS THE POINT TODAY
Here we are looking at another round in the solicitor-own client assessment war of attrition. The question was whether a solicitor, in a solicitor and own client assessment, should reply to Part 18 requests for further information about premiums paid…
THE CURRENT IMPORTANCE OF PLEADINGS 20: CLAIMANT’S COSTS REDUCED BY 50% BECAUSE OF THE NATURE OF THE PLEADED CASE (OR… HOW TO LOSE £3.3 MILLION IN COSTS…)
Today we are looking at a case where a successful claimant’s cost were halved because of its “vague and expansive” pleadings, coupled with a failure to “specify with clarity and precision” what its case was. (Half a sixpence…
ANOTHER ROUND IN THE MEDICAL AGENCY/FEE BREAKDOWN CONFLICT: THERE ARE LOTS OF CASES TO CHOOSE FROM…
I am grateful to Express Solicitors for sending me a transcript of a judgment that marks another round in the fee note/medical agency/provide a breakdown conflict. Here we have the judge considering whether a breakdown, incorporating the percentage taken by…
COSTS AND OTHER CONSEQUENCES CONSIDERED WHEN A CLAIMANT BEATS THEIR OWN PART 36 OFFER: CIRCUIT COMMERCIAL COURT DECISION: HOW IS THE ADDITIONAL LIABILITY CALCULATED WHEN THE JUDGMENT IS NOT IN STERLING?
We are looking at a case where the claimant beat its own Part 36 offer and the court had to consider the consequences. There were some unusual aspects in that the judgment was not given in sterling. However the judge…
COST BITES 244: WHEN ARE INDEMNITY COSTS APPROPRIATE? SHOULD THE FEES OF JUNIOR COUNSEL BE RECOVERED IN FULL? A SUMMARY ASSESSMENT IN THE COMMERCIAL COURT CONSIDERED
I periodically remind people (and remind myself) that one of the purposes of this series is to look at what is happening “on the ground” in relation to costs, including the summary assessment of costs. Practitioners may only have limited…
HOW FAR IS A SOLICITOR’S ESTIMATE OF COSTS BINDING? THE RELEVANT PRINCIPLES CONSIDERED AND APPLIED: A HIGH COURT APPEAL
Many, if not all, litigators will be familiar with the scenario whereby an estimate of costs is given and events develop so that the estimate is overtaken. This scenario was considered in the case we are considering today. An estimate…
COST BITES 242: THE WORDING OF THE RETAINER DID NOT ENABLE THE SOLICITOR TO RENDER INTERIM STATUTE BILLS: THE BILLS HAD INSUFFICIENT INFORMATION IN ANY EVENT
I am grateful to my colleague Paul Hughes for sending me a copy of the decision we are looking at today. Another case on the ongoing saga of whether a retainer allows a solicitor to serve interim statute bills. The…
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