BACK TO BASICS MONDAY: APPLYING TO VARY A COSTS BUDGET: WHAT YOU NEED TO SHOW
What does an applicant need to show if it wants to persuade the court to vary an existing costs budget? There was a helpful summary of the principles set out in a case we looked at last week. An application…
PART 36 OFFERS ON COSTS: JUDGE ALLOWS DEFENDANT’S APPEAL: THE OFFER HAD NOT BEEN BEATEN, THE COSTS OF PREPARING THE BILL WERE NOT RECOVERABLE
I am grateful to barrister James Miller for sending me a copy of this decision which highlights an important issue in relation to Part 36 and the assessment of costs. At first instance a Deputy District Judge found that the…
COST BITES 337: CLAIMANT FAILS IN ATTEMPTS TO ARGUE “SPECIAL CIRCUMSTANCES” UNDER THE SOLICITORS ACT
A client has a limited amount of time to challenge a solicitor’s bill. If the bill is challenged 12 months after delivery or payment then the power to order assessment can only be exercised if the court accepts that there…
COST BITES 336: MOST OF THESE THINGS ARE NOT “SIGNIFICANT DEVELOPMENTS” AND DO NOT JUSTIFY A VARIATION IN THE BUDGET: THE JUDGE NOT PERSUADED ON THE USE OF LEADING COUNSEL, NEW SOLICITORS WITH HIGHER HOURLY RATES AND THINGS MISSED FROM THE FIRST BUDGET
Here we have a detailed analysis of a defendant’s application to vary (that is more than double) its original costs budget. At the PTR stage the defendant applied to double its costs budget, some of this was allowed, most was…
COST BITES 335: DID FIXED COSTS APPLY? THE EXCEPTIONS, THE TRANSITIONAL PROVISIONS AND THE EFFECT OF PART 36 CONSIDERED
I am grateful to Aofie Murphy from Brabners for sending me a copy of this judgment this morning. It relates to fixed costs (i) the exceptions; (ii) the transitional provisions; (iii) whether a Part 36 offer displaced them. It has…
THE COURT REFUSES TO SET ASIDE A PEREMPTORY ORDER IN A SOLICITOR – CLIENT ACTION: LOTS TO LEARN HERE IN TERMS OF BOTH COSTS AND PROCEDURE
Here we are looking at a case that bristles with issues both in relation to solicitor and own client costs, but also in relation to civil procedure and compliance with court orders. It serves as a reminder that a client…
COST BITES 333: REMEMBER THE GENERAL RULE IS THAT DETAILED ASSESSMENT TAKES PLACE AT THE END OF PROCEEDINGS, NOT AFTER THE TRIAL OF A PRELIMINARY ISSUE
We are returning to a point that can easily be overlooked by a party that has been successful at a split trial or a trial of a preliminary issue. Although the court may make an order in that party’s favour,…
COST BITES: 330 THE ABSENCE OF A COSTS SCHEDULE DOES NOT MEAN THAT A SUCCESSFUL RESPONDENT IS GOING TO BE DEPRIVED OF THEIR COSTS
Here we have an interesting issue about whether the successful respondent to an appeal should be deprived of their costs because a costs schedule had not been filed. The appellant’s alternative argument was that the respondent should be ordered to…
COST BITES 329: THE COURT’S APPROACH TO INTERIM PAYMENTS ON COSTS THAT ARISE FROM APPLICATIONS AND CLAIMS FOR “OVERSPENDS” – COSTS OUTSIDE THE BUDGET
Some of the basic principles upon which the courts make orders for interim payments are well established, particularly when the case has been budgeted. This case considers the appropriate approach when there is a claim for costs arising from interlocutory…
COST BITES 327: THE COSTS OF FILING AN ERRANT REPLY CONSIDERED: AN APPLICATION PURSUED “AGGRESSIVELY” – COSTS REDUCED TO 10% OF THOSE CLAIMED
Here we have the defendant making a justified, and successful, application to strike out a Reply. However the judge was unhappy with the manner in which the application (and the litigation generally) was being conduced (by both sides). He found…
COST BITES 325: DOES THE FACT THAT THERE WOULD BE COMPLEX ISSUES ON DETAILED ASSESSMENT MEANT THE COURT SHOULD NOT MAKE AN ORDER FOR PAYMENT OF COSTS ON ACCOUNT?
The rules, and often the courts, are keen to encourage payments on account of costs. They have advantages to both parties. The receiving party receives a large percentage of costs promptly, the paying party reduces the amount of interest that…
COST BITES 324: THE TIME FOR ASSESSING COSTS IS NOW – WHO KNOWS WHAT WILL HAPPEN LATER
Here we are looking at an argument by a paying party that costs payable at an application should be reduced because the work would be required to be done at a later stage in any event. (The judge has no…
COST BITES 324: COURT REFUSES TO REDUCE SUCCESSFUL DEFENDANT’S COSTS BECAUSE OF REFUSAL TO ENGAGE IN MEDIATION
A party liable to pay the costs of a successful opponent is always keen to reduce that liability, not least by arguing that they should have a reduction in costs because of their opponent’s conduct. We see such an argument…
COST BITES 323: HOURLY RATES: THIS CASE DOES NOT FALL INTO LONDON BAND 1: IT CERTAINLY DOES NOT JUSTIFY FEES ABOVE THAT RATE…
We are returning to the issue of hourly rates. In this case the receiving party sought hourly rates that were above the London 1 band. The judge held that the case did not fall within that band and certainly did…
COST BITES 322: WHAT IS THE POSITION OF AN INSURER IN RELATION TO VAT WHEN THE INSURED IS INSOLVENT: DOES A PAYING PARTY NOW HAVE TO PAY VAT?
This is an interesting “cost bite” issue. What is the position on VAT when an insurer is being sued under the Third Parties (Rights Against Insurers) Act 2010 but the insured has gone into voluntary liquidation? Is a paying party…
COST BITES 321: THE GUIDELINE HOURLY RATES ARE NOT “SOMEWHAT OUT OF DATE”
The previous post on the updating of the Guideline Hourly rates leads us to this next case. It poses the question – are the rates “somewhat out of date”. As we shall see the judge gives a clear answer. (There…
NEW YEAR: NEW GUIDELINE HOURLY RATES: SEE THE DETAILS HERE: EFFECTIVE FROM YESTERDAY
The new Guideline hourly rates were published yesterday. They take effect from 1st January 2026 (for anyone working on that day…). They have been updated using service producer price inflation (SPPI). THE INCREASES The increases are 2.28%, using the…
REVIEW OF THE YEAR 11: OPENING LINES OF JUDGMENTS 2025: “FOR MILLIONS OF YEARS MEN LIVED JUST LIKE ANIMALS”: ST PAUL’S CATHEDRAL, SHERLOCK HOLMES AND FINDING INGENIOUS WAYS NOT TO PAY TAX: ALL LITIGATION LIFE IS HERE…
Consideration of the opening lines of judgments has been a feature of this blog for some years now. It has sometimes been a way of providing a little light relief towards the end of what is often a 12 month…
COST BITES 320: CLAIMANT WAS ENTITLED TO SEEK A FURTHER INTERIM PAYMENT AS TO COSTS: “I THINK IT CONSIDERABLY UNFORTUNATE THAT THIS POINT HAS BEEN TAKEN”
Later this month we are taking our traditional end of year look at “opening lines of judgments”. Sometimes opening lines provide a clue as to the judge’s thinking. When the first sentence contains the words “I think it is considerably…
REVIEW OF THE YEAR 5 : 111 POSTS IN THE “COSTS BITES” SERIES (AND COUNTING): DON’T LOOK AWAY NOW…
There is no doubt at all that the Costs Bites series is one of the most widely read on this blog. The series started in July 2022 and the aim is to look at what is happening in relation to…
COST BITES 319: WHATSAPP MESSAGES CAN FORM PART OF A SOLICITOR’S FILE: THE DEFENDANT FIRM WAS, THEREFORE, IN BREACH OF A PEREMPTORY ORDER
This case raises highly significant issues for all firms of solicitors. It relates specifically to whether messages sent by WhatsApp form from private phones form part of a solicitor’s file. However the case extends to any type of electronic communication,…
COST BITES 317: ANOTHER ROUND IN THE MEDICAL AGENCY FEES/BREAKDOWN BATTLE: THE AGENCY MUST PROVIDE A BREAKDOWN
Here we have another case in the long-running battle over the disclosure of agency fees. I am grateful to Claire Kewin from Keoghs solicitors for sending me a copy of the judgment and for her summary of its practical implications…
COST BITES 316: THE CLAIMANT HAS JUDGMENT FOR £175,380 BUT WHO (IF ANYONE) SHOULD PAY THE COSTS? A SURPRISING RESULT (JUST THINK “OUCH”..)
It is not uncommon to see discussions in relation to who should pay the costs after a judgment is given. This is a judgment with a twist, in that the court considered, at the end of protracted litigation, whether anyone…
MAZUR MATTERS 42: CAN ANY GOOD COME OF ALL THIS? POSITIVE THINKING ABOUT DELEGATION AND THE CONDUCT OF LITIGATION: SOME USEFUL LINKS
The current situation is that large parts of the profession are waiting, with bated breath, for a Court of Appeal judgment as to whether the Mazur decision was right, in particular in relation to non-authorised employees having the “conduct” of litigation. …
COST BITES 312: A CHANCE TO SEE COSTS BUDGETING IN ACTION: A CASE WHERE FUNDAMENTAL DISHONESTY IS ALLEGED AND THE CLAIMANT IS A PROTECTED PARTY
It is always interesting to read detailed decisions about costs budgeting. They are few and far between. We have a full judgment here where the Master deals with issues such as hourly rates, the impact of allegations of dishonesty and…
COST BITES 309: ISSUES OF SECURITY FOR COSTS CONSIDERED IN A SOLICITOR AND OWN CLIENT ASSESSMENT : WITH IMPORTANT POINTERS HERE FOR ALL SECURITY FOR COSTS APPLICATIONS: “I AM NOT PREPARED TO DECIDE THIS APPLICATION ON THE BASIS OF INFERENCE AND CONJECTURE”)
We are looking at an application relating to security for costs in the context of a solicitor and own client assessment. However, as the heading indicates, there are more general lesson here for all litigators. In particular the need to…
TALES FROM THE COST LAW CONFERENCE SOME BRIEF POINTS (3): COSTS JUDGE SIMON BROWN ON THE NUTS AND BOLTS OF COSTS BUDGETING
Costs Judge Brown makes the point here that costs budgeting is here to stay. There are a few basic issues, the “nuts and bolts” of budgeting which help ensure that the whole process runs smoothly. (You can never underestimate the…
COST BITES 306: ALLEGATIONS OF FRAUD TOOK CIRCUMSTANCES OUT OF THE NORM: INSURER ORDERED TO PAY INDEMNITY COSTS TO THE CLAIMANT
Here we look at a case where the judge found that the defendant’s conduct in alleging fraud was such that costs should be ordered on the indemnity basis. Among other things this judgment reminds us of the dangers of alleging…
TALES FROM THE COSTS LAW CONFERENCE SOME BRIEF POINTS 2: (MIS) CONDUCT IN THE ASSESSMENT PROCESS
Staying with the conference today. Costs Judge Leonard gave an interesting talk on “conduct” in the assessment process which he, said was more accurately about “misconduct in the assessment process. (This was one of Judge Leonard’s slides. It highlights the…
COST BITES 304: IN A DISPUTED WILL CASE WHO SHOULD PAY THE COSTS? WHAT SHOULD THE BASIS OF THE ORDER BE? SHOULD THERE BE AN INTERIM ORDER FOR COSTS?
There are particular rules that relate to costs in probate proceedings. Here we look at a decision on costs that is of more general interest. The judge considered the issue of whether the unsuccessful defendant should pay the costs, the…
COST BITES 303: THE SOLICITOR CANNOT PASS ON RESPONSIBILITY FOR A DEFECTIVE BILL TO THE COSTS LAWYER: A 75% REDUCTION BECAUSE OF THE WAY IN WHICH THE BILL WAS DRAFTED
Here we are looking at a case involving a bill of costs that was wholly defective that the costs judge was invited to strike it out. The judge came very close, but reduced the bill by 75% instead. There…
MAZUR MATTERS 27: TWO MORE USEFUL LINKS: A USEFUL GUIDE FROM INSURERS: PLUS THE FIRST “REAL WORLD” CASE WHERE MAZUR HAS LED TO A SUBSTANTIAL REDUCTION IN COSTS
The commentary on Mazur continues. Here I want to look at two useful links. The first relates to guidance given by an insurer. The second relates to the first report (I have seen) on Mazur having an impact on costs….
SHOULD A CLAIMANT BE GIVEN PERMISSION TO WITHDRAW THEIR OWN PART 36 OFFER? (2): THE PRINCIPLES CONSIDERED
We continue with the consideration of the recent case in which a claimant applied for permission to withdraw a Part 36 offer. The judge also considered the relevant rules and case law in detail. (You need the court’s permission to…
COST BITES 300: THE SERIES TO DATE: IT STARTED WITH A “BOUTIQUE FIRM”, YESTERDAY IT WAS ABOUT CONDUCT, AND IS UNLIKELY TO END SOON…
This series started in July 2022. I wanted to make sure that we got to look at the “smaller” issues in relation to costs as well as major decisions. Those “incidental” issues, summary assessments, judicial commentary and the like can…
COST BITES 298: SHOULD THE DEFENDANT PAY ALL THE COSTS WHEN THE CLAIMANT DISCONTINUED AGAINST OTHER DEFENDANTS
We are looking here at an issue relating to a defendant’s liability to pay the costs of other defendants against whom no order for costs was made. Was the “paying” defendant also liable to pay the costs that the claimant…
COST BITES 297: THE NATURE OF COSTS CONSIDERED IN THE SUPREME COURT – WHICH GOES BACK TO FIRST PRINCIPLES: “THE EXPRESSION”LEGAL COSTS” HAS A RESTRICTED MEANING”: COSTS HAD TO BE PAID IN STERLING
It is very unusual for issues relating to costs to reach the Supreme Court. There was such a case yesterday. The Court considered whether a paying party was liable to pay costs in sterling or the domestic currency of the…
MAZUR MATTERS 24: WHAT IS MEANT BY THE “CONDUCT OF LITIGATION” (5): THE MEANING OF “COURT” AND WHAT ACTIVITIES ARE NOT COVERED BY ACT
Here we continue with the examination of what is meant by the “conduct litigation” by looking at the Statute and Law Society Guidance as to the meaning of “court”. This extends to some, but not all, tribunals. (Some courts are…
PART 36 CASE OF THE DAY (2): SHOULD THE NORMAL CONSEQUENCES OF A FAILURE TO BEAT A PART 36 OFFER APPLY? INTERESTING ISSUES OR ISSUES ON INTEREST?
We continue looking at a High Court decision with some interesting issues in relation to the making of Part 36 offers and the consequences for a party if the offer is not beaten. Here we look at the court’s considerations…
MAZUR MATTERS 17: WHAT ABOUT COST LAWYERS? RE-VISITING OLD GROUND: A CASE THAT MAKES USEFUL READING
There are a number of issues that have come up in relation to the impact of the Mazur decision. One of those relates to the activities of cost lawyers. The case law and principles relating to this were considered in…
COSTS GROUP AT KINGS CHAMBERS – LOOKING FOR NEW MEMBERS: SEE THE ADVERT HERE
The Costs Group at Kings Chambers are looking for new members to join the happy team. Details are below. THE ADVERT Make your move… Be part of the growth in Costs Litigation As part of our continued growth…
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…
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