IF YOU WANT HOURLY RATES HIGHER THAN THE GUIDELINE FIGURES YOU HAVE TO PROVIDE “A CLEAR AND COMPELLING JUSTIFICATION”: COURT OF APPEAL DECISION TODAY
In Samsung Electronics Co. Ltd & Ors v LG Display Co. Ltd & Anor (Costs) [2022] EWCA Civ 466 the Court of Appeal sent out a clear message that if a party wants hourly rates outside the guideline rates then…
COURT OF APPEAL UPHOLDS AN ORDER THAT NO COSTS BE ORDERED ON AN APPEAL
In South Lodge Flats Limited v Malik [2022] EWCA Civ 411 the Court of Appeal upheld a decision that no order for costs be made on an appeal. The defendants had succeeded in the appeal but required the indulgence of…
TWO CLAIMANTS – TWO SETS OF COSTS: JUDGMENT ON FIXED COSTS REGIME
In Melloy & Anor v UK Insurance Ltd [2022] EW Misc 4 (CC) HHJ Glen decided that where there are two claimants in a fixed costs case then each claimant is entitled to a separate award of costs under Section…
A CLAIMANT WHO OBTAINS AN ORDER UNDER SECTION 33 IS “SUCCESSFUL”: COSTS, CONDUCT AND INTERIM PAYMENTS ON ACCOUNT OF COSTS CONSIDERED
In Aderounmu v Colvin (Costs) [2022] EWHC 637 (QB) Master David Cook made an order for costs in favour of a claimant who had succeeded on a preliminary issue. A discount was made because certain aspects of the case had…
THE INDEMNITY PRINCIPLE BITES ON A SUCCESSFUL DEFENDANT BUT NOT ON A SUCCESSFUL CLAIMANT INSURER: CLAIM £438,388.95 IN COSTS, RECOVER £1,368.75.
Issues relating to the indemnity principle give rise to a number of issues in litigation about costs. The principles loom large in the judgment of Costs Judge Leonard in Liverpool Victoria Insurance Co Ltd v Khan & Ors [2022] EWHC…
SOLICITOR CANNOT TAKE OVER CLIENT’S CAUSE OF ACTION: COURT OF APPEAL CONSIDERS ISSUES RELATING TO CHAMPERTY
In Farrar & Anor v Miller [2022] EWCA Civ 295 the Court of Appeal upheld a decision that a firm of solicitors could not continue an action that had been assigned to them by their client. “a champertous agreement…
INDEMNITY COSTS IN PUBLIC LAW PROCEEDINGS: FAILURE BY THE EXECUTIVE TO COMPLY WITH CONSENT ORDER TAKES THE CASE OUT OF THE NORM
In Butt, R (on the application of) v Secretary of State for the Home Department (Indemnity costs) [2022] UKUT 69 (IAC) the Upper Tribunal found that it had power to order indemnity costs, further, on the facts of this case…
RESERVED JUDGMENTS: IF YOU DON’T APPLY FOR THE COSTS IN TIME THEN YOU DON’T GET THEM: HIGH COURT DECISION
In Preston v Beaumont [2022] EWHC 440 (Ch) Richard Farnhill, sitting as a Deputy Judge of the Chancery Division, found that a successful respondent to an appeal could not recover costs. There had been a failure to comply with the…
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 226: RECOVERING INTEREST ON DISBURSEMENT LOANS: THE NEED FOR EVIDENCE
I am grateful to barrister James Miller for sending me a copy of the decision of District Judge Corkhill in the case of Gill -v- Barnsley Canister Company Ltd, a copy of which is available here Gill v Barnsley Canister…
COSTS, FATAL ACCIDENTS: THE DUTY TO INFORM THE CLIENT OF “UNUSUAL COSTS” AND WHEN THE BUDGET IS BEING EXCEEDED
The judgment of Senior Costs Judge Gordon-Saker in ST v ZY [2022] EWHC B5 (Costs) highlights many problem areas in relation to fatal accident litigation and the assessment of costs. In particular it is prudent to take early steps to…
ASSESSMENTS UNDER THE SOLICITORS ACT: INTERIM BILLS, VALID BILLS AND “SPECIAL CIRCUMSTANCES”: A DECISION ON APPEAL
The decision of HHJ Gosnell (sitting as a High Court Judge) in Richard Slade And Company Plc v Erlam [2022] EWHC 325 (QB) relates to the assessment of solicitor and own client bills. However the appeal also gave rise to…
LAWYERS AS SCHOOCHILDREN IN THE PLAYGROUND: BAD-TEMPERED LITIGATION: THE SUMMARY ASSESSMENT OF COSTS: THE TAIL TO AND NOT THE DOG ITSELF
In Crypto Open Patent Alliance v Wright [2022] EWHC 242 (Ch) HHJ Paul Matthews (sitting as a High Court Judge) made some trenchant observations in relation to arguments about costs on summary assessment. The criticisms of the way that litigation…
“THERE IS A DANGER … THAT PROPORTIONATE ORDERS END UP UNDERMINING THE GENERAL RULE THAT COSTS FOLLOW THE EVENT”: SUCCESSFUL CLAIMANT GETS 100% OF THEIR COSTS
In Deutsche Bank AG London v Comune Di Busto Arsizio [2022] EWHC 219 (Comm) Mrs Justice Cockerill considered, and rejected, the defendant’s arguments that there should be a “proportionate” costs order. The judgment serves as a reminder of the basic…
A FINAL COSTS CERTIFICATE IS ESSENTIAL FOR COSTS TO BECOME DUE: THE BILL SHOULD HAVE BEEN SIGNED OFF…
In Johnston -v- Wackett [2022] EWHC 129 (Ch) Deputy Master Brightwell considered the question of whether costs become payable when a final costs certificate is not obtained. “Even though most paying parties may in practice pay without the need…
THE DANGERS OF DISPUTING COSTS (IT COULD COST YOU OVER £240,000…)
The judgment of Mrs Justice Lambert in Radia v Marks [2022] EWHC 145 (QB) is also interesting reading in that it gives an insight into the assessment of costs in earlier proceedings. It highlights the dangers and costs of costs proceedings…
PUTTING A CAP ON THE COSTS OF A SINGLE JOINT EXPERT: AN UNHAPPY TALE WITH LESSONS TO BE LEARNT
For the second time today I am writing about a case concerning a jointly instructed expert. In Loggie v Loggie [2022] EWFC 2 Mr Justice Mostyn had to determine who should pay the costs of an expert whose final costs…
COURT OF APPEAL ISSUE WARNING AGAINST EXCESSIVE COSTS (INCLUDING THE COSTS OF APPEALS)
In The Public Institution for Social Security v Banque Pictet & Cie SA & Ors [2022] EWCA Civ 29 the Court of Appeal were concerned about the costs involved in litigation on what were, essentially, preliminary issues. This included the…
THERE IS NO RIGHT TO AN IMMEDIATE ASSESSMENT OF COSTS AFTER A SPLIT TRIAL: HOWEVER THERE IS AN (8%) STING IN THE TAIL
The judgment of Costs Judge Leonard in ABA v University Hospitals Coventry and Warwickshire NHS Trust [2022] EWHC B4 (Costs) highlights a point of costs and practice that is easily overlooked. A successful party who is awarded costs in a…
WHAT HAPPENS AT A SUMMARY ASSESSMENT OF THE COSTS OF A TRIAL? ALSO THE COSTS AND INTEREST THAT FOLLOWS A PART 36 OFFER
We have already looked at the judgment of HHJ Pearce (sitting as a High Court Judge) in The Huntsworth Wine Company Ltd v London City Bond Ltd [2022] EWHC 98 in relation to the construction of Part 36 offers. This was…
“DIVIDING THE BILL” WHEN TWO MATTERS PROCEEDED TOGETHER; THE AMOUNT OF INFORMATION NEEDED ON COUNSEL’S FEE NOTES & HOURLY RATES: A LOT IN ONE CASE
In R v Barts Health NHS Trust [2022] EWHC B3 (Costs) Costs Judge Rowley considered a number of interesting issues relating to the problem of apportioning costs where two actions had been run alongside each other. There are interesting observations…
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…
A DEFENDANT MAKES A PART 36 OFFER BUT IT CAN BE A “CLAIMANT’S” PART 36 OFFER WITH ALL THE USUAL CONSEQUENCES: A CASE ABOUT MISSING CASES
The judgment of HHJ Pearce (sitting as a High Court Judge) in The Huntsworth Wine Company Ltd v London City Bond Ltd [2022] EWHC 98 (comm) contains a detailed consideration of several aspects of the law of costs. It is…
SHOULD A RESPONDENT RECEIVE HIS COSTS FOR BEING SENT TO PRISON? JUDGE CONSIDERS ISSUES AFTER CONTEMPT OF COURT HEARING
In Kea Investments Ltd v Watson [2022] EWHC 5 (Ch) Lord Justice Nugee considered the question of what costs order should be made after a respondent had been committed to prison for contempt. The applicant had succeeded on some, but…
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…
CONDUCT AND COSTS: SUCCESSFUL DEFENDANT RECOVERS – NOTHING
In European Real Estate Debt Fund (Cayman) Ltd v Treon & Ors [2021] EWHC 2866 (Ch) Mr Justice Miles considered issues relating to costs after a defendant had succeeded at trial because the claimant’s action was statute barred. The judge…
CAN LEADING COUNSEL RECOVER THEIR FULL BRIEF FEE WHEN A CASE SETTLES TWO WEEKS BEFORE TRIAL?
In Hankin v Barrington & Ors [2021] EWHC B1 (Costs) Deputy Master Campbell considered the question of whether leading counsel’s brief fee was payable in full (or in part) by the defendant when the brief had been delivered but the…
THE SCOPE OF A SOLICITORS ACT ASSESSMENT: DISPUTED EVIDENCE IS “GRIST TO THE MILL”
NB THIS DECISION WAS OVERTURNED BY MR JUSTICE JOHNSON, SEE Lisa Jones v Richard Slade And Company Ltd [2022] EWHC 1968 (QB) In Jones -v- Richard Slade & Co Ltd [2021] EWHC B28 (Costs) Costs Judge Rowley rejected the defendant’s…
SOLICITOR AND OWN COSTS ASSESSMENT: HIGH COURT UPHOLDS DECISION THAT CLIENT NOT LIABLE TO PAY ADDITIONAL COUNSEL’S FEES: SOLICITOR TERMINATED THE RETAINER AND COULD NOT RECOVER COSTS
I wrote about the first instance decision in Murray v Richard Slade And Co Ltd [2021] EWHC 3383 (QB), in two posts in January this year, the first is here, the second here. The claimant in that case (the solicitor…
THE SUMMARY ASSESSMENT OF COSTS: WHEN IT IS (ABOUT) A LOTTERY
I have mentioned before how many people are interested in reading cases about the summary assessment of costs. There is an example in the judgment of Senior Master Fontaine in Goodram & Anor v Camelot UK Lotteries Ltd [2020] EWHC…
THE APPROVAL OF SOLICITOR AND OWN CLIENT COSTS OF A PROTECTED PARTY AFTER SETTLEMENT: CLIENT NOT LIABLE TO PAY ANY FURTHER PROFIT COSTS; SUCCESS FEE REDUCED TO 15%
In BCX v DTA [2021] EWHC B27 (Costs) Costs Judge Brown reduced, substantially, the sums payable to solicitors from their own client. The judge was considering own client costs after the defendant had paid the bulk of the costs. It…
IS A CONDITIONAL FEE AGREEMENT UNENFORCEABLE IF THE SOLICITOR BREACHES THE CODE OF CONDUCT? MUCH TO THINK ABOUT?
The judgment of Mr Justice Trower in Winros Partnership v Global Energy Horizons Corporation [2021] EWHC 3410 (Ch) gives much for lawyers to think about. Here I want to concentrate on one element of that judgment- does a failure to…
THE SOLICITORS DISCIPLINARY TRIBUNAL CAN AWARD COSTS ON THE INDEMNITY BASIS: APPEAL ON THIS ISSUE COMPROMISED
In October 2020 I wrote about the case of SRA -v- Ahmud where the Solicitors Disciplinary Tribunal were highly critical of the steps taken by the SRA in investigating and bringing a claim alleging dishonesty. That case has a short coda in…
LATE SERVICE OF SCHEDULE OF COSTS LEADS TO AN ORDER FOR DETAILED ASSESSMENT (WITH A SUBSTANTIAL INTERIM PAYMENT)
In Vine v Belfield [2021] EWHC 3068 (QB) Mr Justice Nicklin considered the position where a claimant had failed to file a Schedule of Costs. He held that the appropriate course of action was to make an order for detailed…
THE SUMMARY ASSESSMENT OF COSTS: THE DANGERS OF DEPARTING FROM THE CORRECT FORM: A “CHAOTIC” SCHEDULE OF COSTS IS NEVER GOING TO HELP YOUR CAUSE
In Changing Climates Ltd v Warmaway Ltd [2021] EWHC 3117 (TCC) HHJ Sarah Watson issued a warning about departing from the standard form when seeking a summary assessment of costs after a hearing. “There is a reason that the court…
WHAT FIXED COSTS APPLY AFTER A DEFAULT JUDGMENT SET ASIDE? ISSUE CONSIDERED IN THE COUNTY COURT
I am grateful to Simon Fisher of DWF for sending me a copy of the judgment in Chisnall -v- RSA Northern Ireland Insurance Ltd, a copy of which is available here. It deals with an issue relating to fixed recoverable…
PRACTICE NOTE FROM SENIOR COSTS JUDGE: DEDUCTIONS FROM DAMAGES: CHILDREN AND PROTECTED PARTIES
The Senior Costs Judge has issued a Note on the procedure to be followed in the Senior Courts Costs office on approval of costs settlements where the claimant is a child or protected party. THE NOTE APPROVAL…
TRIALS ON PRELIMINARY ISSUES, CALDERBANK OFFERS AND COSTS: COURT OF APPEAL REJECT SUBMISSION THAT “WOULD REPRESENT THE ANTITHESIS OF GOOD POLICY” & “REWARD BAD BEHAVIOUR”
In the judgment in McKeown v Langer [2021] EWCA Civ 1792 the Court of Appeal rejected an argument that a Calderbank offer had the same effect as a Part 36 offer when a court was considering the issue of costs…
COURT OF APPEAL OVERTURNS DECISION THAT THERE SHOULD BE NO ORDER FOR COSTS: COMMITTAL APPLICATIONS ARE NOT SUBJECT TO ANY SPECIAL RULES
In Loveridge & Anor v Loveridge [2021] EWCA Civ 1697 the Court of Appeal overturned a decision that should be no order for costs following the withdrawal of committal proceedings. The Court also allowed costs on the indemnity basis from…
PART 36 OFFER STILL VALID EVEN IF SERVED BY EMAIL: DEFENDANT DID NOT HAVE TO PAY THE USUAL PART 36 CONSEQUENCES
In London Trocadero (2015) LLP v Picturehouse Cinemas Ltd & Ors [2021] EWHC 3103 (Ch) Robin Vos, sitting as a High Court Judge, held that a Part 36 was still valid even if served by email. However, on the facts…
SOLICITOR SHOULD NOT HAVE BEEN COMPELLED TO ATTEND COURT TO GIVE EVIDENCE IN A WASTED COSTS APPLICATION
In Hunt v Annolight Ltd & Ors [2021] EWCA Civ 1663 the Court of Appeal overturned a decision that a solicitor should be compelled to attend court to give evidence in a wasted costs application. “Any requirement for a solicitor…
EXCEPTIONS TO THE FIXED COSTS REGIME: ANOTHER EXAMPLE
Yesterday we looked the case of Lloyd 2 Sisters Poultry Ltd (Costs) [2019] EW Misc 18 HHJ in relation to exceptional circumstances and fixed costs. Bailli has another example in the case of Crompton v Meadowcroft (Costs) [2021] EW Misc 20….
EXCEPTIONS TO THE FIXED COSTS REGIME: DEFENDANT’S APPEAL DISALLOWED: JUDGE ENTITLED TO FIND THAT EXCEPTIONAL CIRCUMSTANCES APPLIED
A case, newly arrived on BAILII today relates to whether a District Judge was correct to award costs outside the fixed costs regime. In Lloyd 2 Sisters Poultry Ltd (Costs) [2019] EW Misc 18 HHJ Howells refused a defendant’s appeal…
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…
“THE ONLY BENEFICIARIES FROM THIS NIHILISTIC LITIGATION HAVE BEEN THE SPECIALIST AND HIGH-QUALITY LAWYERS”: A FAMILY LAW CASE, POSTED WITHOUT COMMENT
Occasionally, very occasionally, this blog trespasses into the area of family law. This is usually about costs or evidence. Today it is about costs, the comments of Mr Justice Peel in Crowther v Crowther & Ors (Financial Remedies) [2021] EWFC…
SECRETARY OF STATE DEFENDANT MUST PAY THE ADDITIONAL LIABILITY AFTER IT FAILED TO BEAT A PART 36 OFFER ON COSTS: THE “PUBLIC PURSE” HAS NO SPECIAL STATUS AS A LITIGANT
In TT, R (On the Application Of) v Secretary of State for the Home Department [2021] EWHC B21 (Costs) Deputy Master Campbell found that the Secretary of State was liable to pay an additional sum when it failed to beat…
A SUMMARY ASSESSMENT OF COSTS: HOW IT WORKS IN PRACTICE: THERE IS NO POINT ARGUING ISSUES OF PROPORTIONALITY WHEN INDEMNITY COSTS HAVE BEEN ORDERED
Whenever I report on an assessment of costs, for reasons that can only be guessed at, that post is always widely read. The judgment of HHJ Davis-White QC in Goodwin v Avison & Ors [2021] EWHC 2754 (Ch) involves…
PART 36: OFFERS MUST BE CONSIDERED EVEN THOUGH ALL THE PIECES OF THE JIGSAW ARE NOT IN PLACE: CONSEQUENCES ARE IMPOSED ON THE ACTUAL AMOUNT AWARDED NOT THE SUM THAT THE MAKER WOULD HAVE SETTLED FOR
I am grateful to Professor Dominic Regan for drawing my attention to the judgment of Mr Justice Kerr today in Equitix Eeef Biomass 2 Ltd v Fox & Ors [2021] EWHC 2781 (TCC). The judge rejected the notion that the…
WHEN CAN A COURT TAKE ADDITIONAL LIABILITIES UNDER A CFA INTO ACCOUNT IN THE AWARD OF DAMAGES?
Another aspect of the Court of Appeal judgment in Hirachand v Hirachand & Anor [2021] EWCA Civ 1498 was the Court of Appeal’s consideration of whether it was appropriate for the judge to take into account liabilities for costs under a…
COSTS OF ASSESSMENT CAN BE REDUCED BECAUSE BILL WAS REDUCED: NO NEED FOR MISCONDUCT OR SKULDUGGERY
In Milbrooke Construction Ltd v Jones [2021] EWHC B20 (Costs) Costs Judge Brown found that the reduction of a bill of costs by a major percentage can be grounds, in itself, for disallowing part of the receiving party’s costs of…
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