COSTS BITES 53: POSSIBILITY OF AN APPEAL AND INABILITY TO RELY ON COSTS BUDGET ARE NOT GROUNDS FOR REFUSING AN INTERIM ORDER FOR COSTS
In Isaac v Tan & Anor (Re Costs) [2022] EWHC 3478 (Ch) Mr Justice Adam Johnson considered issues of costs following an unsuccessful unfair prejudice application relating to the shares of Cardiff City Football Club. He held that the application…
COST BITES 52: “WE WANT IT ALL AND WE WANT IT NOW”: COURT REFUSES CLAIMANT’S APPLICATION FOR A SUMMARY ASSESSMENT OF COSTS
One of the aims of this series is to look at those issues of costs that are, on the face of it, incidental to the main issue decided by the court. However, in practical terms, the costs issue is of…
COST BITES 50: USEFUL LINKS ON COSTS FROM KINGS CHAMBERS: TAKE YOUR PICK…
There are a large number of helpful links on Kings Chambers’ Resource page. Here I link specifically to those relating to costs. Firstly the newsletters and articles and secondly the regular series of webinars. NEWSLETTERS Costs Litigation Newsletter:…
COST BITES 47: PROVING (OR DISPROVING) THAT THERE WAS A VALID RETAINER: APPORTIONING RECOVERABLE COSTS BETWEEN TWO DEFENDANTS
In Reed v Woodward Property Developments Ltd & Anor [2023] EWHC 36 (SCCO) Costs Judge Leonard considered a number of issues. Firstly the court’s approach when there was a dispute as to whether there was a valid retainer. Secondly questions…
COST BITES 45: COURT REJECTS DEFENDANT’S APPLICATION THAT CASE INVOLVING A CHILD BE BUDGETED: ACCEPTS CLAIMANT’S APPLICATION FOR AN INTERIM PAYMENT ON COSTS – BUT NOT THE AMOUNT CLAIMED
In CXS v Maidstone and Tunbridge Wells NHS Trust [2023] EWHC 14 (KB) Master Cook considered issues relating to costs in a case concerning a child where the matter is unlikely to be resolved for many years. The Master rejected…
THE COSTS JUDGE OVER YOUR SHOULDER 2023 – MAXIMISING RECOVERY: WEBINAR 6th APRIL 2023
The recent judgment in Deutsche Bank AG v Sebastian Holdings Inc [2023] EWHC 9 (SCCO) illustrates the problems that receiving parties can cause for themselves. The claimant’s bill was reduced by 31% (£16.9 million) despite the assessment being on an indemnity…
IMPOSING A COSTS CAP CANNOT BE A MEANS OF STIFLING LITIGATION OR ACHIEVING OTHER ENDS BY THE BACK DOOR: DEFENDANT’S APPLICATION FOR PERMISSION TO APPEAL REFUSED
There are rules governing the citation of judgments refusing permission to appeal. However the judgment of Lord Justice Coulson in PGI Group Ltd v Thomas & Ors (Application for Permission to Appeal) [2022] EWCA Civ 233 has been put on BAILII…
PROVING THINGS 222: SPENDING £200,000 IN COSTS OVER 9 INCHES OF LAND: BEYOND THE JUDGE’S COMPREHENSION AS TO HOW THIS GOT SO EXPENSIVE
In Davis & Anor v Winner [2021] EW Misc 23 (CC) the parties between them appear to have spent over £200,000 in costs. This is a dispute over inches of land. It is not surprising that HHJ Mithani QC expressed…
DOMESTIC BUILDING LITIGATION AND PREVENTING FINANCIAL DISASTER: SUGGESTIONS FROM THE CIRCUIT BENCH
In The Sky’s the Limit Transformations Ltd v Mirza [2022] EWHC 29 (TCC) HHJ Stephen Davies makes a number of suggestions designed to mitigate the potentially ruinous costs of litigation in relation to domestic building disputes. ” … it would…
DEFENDANT WHO DID NOT FILE A REVISED COSTS BUDGET COULD NOT (NECESSARILY) RECOVER THE COSTS OF A COUNTERCLAIM
In Bhat & Anor v Patel & Anor [2021] EWHC 2960 (Ch) Mrs Justice Fancourt held that defendants, who had not filed a revised costs budget, were not entitled to recover the costs of that counterclaim unless a relief from…
BUDGETED COSTS ARE NOT NECESSARILY THE LOWEST COSTS ( & THE COURT SHOULD ADOPT A CAUTIOUS APPROACH TO MAKING COMMENTS IN RELATION TO INCURRED COSTS): HIGH COURT DECISION
In Discovery Land Company, LLC & Ors v Axis Specialty Europe SE [2021] EWHC 2146 (Comm) Peter MacDonald Eggers QC (sitting as a Deputy Judge of the High Court) set out some of the principles relating to costs budgeting, in…
“I EXPECTED THAT THE LAWYERS IN THE CASE WOULD WORK CONSCIENTOUSLY WORK WITHIN THE BUDGET WHICH I HAD SET. SADLY, I SENSE, THAT THEY HAVE NOT TRIED VERY HARD TO DO SO”
In Z (No.2) (Schedule 1: Further Legal Costs Funding Order; Further Interim Financial Provision) [2021] EWFC 72 Mr Justice Cobb carried out what was, essentially, a cost budgeting exercise in a family case. There are important observations about the need…
CASES IN THE ASBESTOS LIST ARE NOT SUBJECT TO COSTS BUDGETING: THERE ARE NO EXCEPTIONS…
In Smith v W Ford & Sons (Contractors) Ltd [2021] EWHC 1749 (QB) Master Davison refused a defendant’s application that costs budgeting take place in a case that was in the Asbestos list. “These listing arrangements cannot accommodate costs budgeting….
SIGNIFICANT DEVELOPMENTS IMMEDIATELY BEFORE THE CASE IS COSTS BUDGETED? WHEN IS THE SOLICITOR EXPECTED TO JUMP?
In Thompson -v- NSL Limited [2021] EWHC 679 (QB) Master McCloud considered the issue of whether there had been significant developments sufficient to allow a revision of the costs budget when it was known at the time the budget was…
APPLYING TO VARY A COSTS BUDGET: RULES AND PROCEDURE: WEBINAR 19th MAY 2021
On the 19th May 2021 I am presenting a webinar on applying to vary a costs budget. Booking details are available here. WHAT THE WEBINAR COVERS Making sure that the budget is, and remains, correct is an important part of…
APPLICATIONS TO VARY A COSTS BUDGET: SIGNIFICANT DEVELOPMENTS, PROMPTNESS AND CPR 3.15A: A JUDGMENT THAT EVERY CIVIL LITIGATOR HAS TO READ
In Persimmon Homes Ltd & Anor v Osborne Clark LLP & Anor [2021] EWHC 831 (Ch) Master Kaye provides a “cut out and keep” guide for anyone involved in attempting to vary a costs budget. There are important points made…
“THE DEVELOPING BODY OF LAW AS TO THE RELATIONSHIP BETWEEN COSTS MANAGEMENT AND DETAILED ASSESSMENT”: INTERIM ORDER FOR COSTS AFTER A TRIAL: 90% OF BUDGETED COSTS 70% OF INCURRED COSTS
The courts have been supportive of applications for interim costs for a successful party after a trial. The interim payment at this stage is not nominal and is normally firmly based on the budgeted costs. A working example can be…
CIVIL PROCEDURE BACK TO BASICS 89: THE 2% CAP ON COSTS BUDGETING: SOMETHING TO WATCH OUT FOR
Some draft orders for CCMCs I have seen recently included, towards the end a provision for the 2% cap on the budgeting process to be be applied. Anyone faced with such a draft should point to the provisions of CPR…
YOU CAN’T CLAIM THE COSTS OF ADVERTISING FOR CLIENTS IN YOUR COST BUDGET: YOU REALLY CAN’T
An interesting point arose in the judgment of Mr Justice Saini in Weaver & Ors v British Airways Plc [2021] EWHC 217 (QB). The costs of advertising for clients to join a Group Litigation Order are not recoverable, they were…
Senior Courts Costs Office Guide – the 2021 version is now available
The latest version of the Senior Court Costs Office Guide is available from today. THE GUIDE The Guide is available on a link here. The Guide now only exists electronically although the notes observe that it may be…
COSTS BUDGETING: PRECEDENT T: EXCEL VERSION
I am grateful to Sean Linley for sending me an excel version of the new Precedent T. It gives me another chance to remind people of the new rules that come into force and and post photos of cars that…
THE NEW COSTS MANAGEMENT PRACTICE DIRECTION: COMING INTO FORCE 1st OCTOBER 2020: READ IT HERE
The new Costs Management Practice Direction comes into force on the 1st October 2020. It is set out in full below. SOME POINTS OF INTEREST The specific exclusion of cases where the claimant has a limited life expectancy (which…
THE NEW PRECEDENT T: SEE IT HERE: A MODEL OF ITS KIND…
I am grateful to Sean Linley for sending me a copy of the new Precedent T that will apply to amended budgets after the 1st October 2020. You can see it here. Precedent T Example THE NEW RULES…
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…
CIVIL PROCEDURE: BLOG AND ARTICLES ROUND UP – MAY 2020
As we adjust to the problems of the pandemic some of the more conventional issues of litigation have been dealt with extensively this month. Costs ACL Trio of High Court judges issue costs penalties to defendants that refused ADR ACL Claimant not…
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…
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…
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…
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…
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…
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…
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…
You must be logged in to post a comment.