THE RULES ABOUT WITNESS STATEMENTS “SHOULD NOT BE USED AS A WEAPON FOR THE PURPOSE OF BATTERING THE OPPOSITION”: COMMONSENSE MUST BE USED: APPLICANT ORDERED TO PAY 75% OF THE RESPONDENTS’ COSTS ON THE INDEMNITY BASIS
In Curtiss & Ors v Zurich Insurance Plc & Anor (Costs) [2022] EWHC 1514 (TCC) HHJ Keyser QC (sitting as a Judge of the High Court) ordered the applicant to pay 75% the respondents’ costs on the indemnity basis. The…
INDEMNITY COSTS NOT AWARDED WHEN A DEFENDANT REFUSED TO MEDIATE: HIGH COURT DECISION TODAY
In Richards & Anor v Speechly Bircham Llp & Anor (Consequential Matters) [2022] EWHC 1512 (Comm) HHJ Russen (sitting as a High Court judge) refused an application for indemnity costs made on the basis that the defendants had refused mediation….
SUMMARY ASSESSMENT OF COSTS: HOURLY RATE TOO HIGH AND LAWYERS SHOULD LEARN TO DELEGATE
In Rushbrooke UK Ltd v 4 Designs Concept Ltd [2022] EWHC 1416 (Ch) HHJ Paul Matthews (sitting as a Judge of the High Court) considered the costs to be paid to a successful respondent. The judge did not allow the…
“HOW IS IT THAT THESE EXORBITANT COSTS HAVE BEEN INCURRED?”: A JUDICIAL LAMENT: FINANCIAL REMEDY LITIGATION HEADING FOR RITZ HOTEL STATUS
In Gallagher v Gallagher (No.2) (Financial Remedies) [2022] EWFC 53 Mr Justice Mostyn, expressed his concern about the costs incurred in a financial remedies case. This is far from being the first time there has been judicial lament about the…
RESPONDENTS CANNOT BE ORDERED TO PAY THE COSTS OF OTHER RESPONDENTS WHEN THERE WAS NO DISPUTE BETWEEN THEM
In Elser v Sands & Ors [2022] EWHC 1419 (Ch) Chief ICC Judge Briggs held that the court did not have power to order one respondent’s costs to be paid by other respondents. There was nothing in dispute between them…
AN INSURANCE PREMIUM WAS PROPERLY INCURRED: JUDGE, ON APPEAL, ALLOWS ATE COSTS TO BE DEDUCTED FROM CHILD’S DAMAGES
I am grateful to Express Solicitors for sending me a copy of a judgment of X -v- H&M Hennes, made by HHJ Lethem on 21st April 2022. It relates to the recoverability of an insurance premium between solicitor and client. …
THE COSTS JUDGE OVER YOUR SHOULDER: THINKING ABOUT DETAILED ASSESSMENT OF COSTS FROM THE OUTSET: WEBINAR 20th JULY 2022
The assessment of costs is a crucial stage in litigation. Detailed assessment usually takes place after attempts at settlement of costs have failed and there are some major differences between the parties. Relatively few litigators have experience of attending a…
“IT WAS UNNECESSARY FOR MATTERS TO BE DEALT WITH SO EXPENSIVELY”: ANOTHER COMMENT ON LACK OF FOCUS IN THE COMMERCIAL COURT
For the second time today I am writing about judicial comments on profligacy in the Commercial Court. This time Mr Justice Andrew Baker in Invest Bank PSC v El-Husseini & Ors [2022] EWHC 894 (Comm). “Even in the context…
WHY A SHORT WITNESS STATEMENT CAN BE MORE COSTLY THAN A LONG ONE? CONDUCT, COSTS, PAYMENTS ON ACCOUNT: AN (UNSUCCESSFUL) APPLICATION TO AMEND THAT COULD COST £1 MILLION
In PJSC National Bank Trust & Anor v Mints & Ors [2022] EWHC 1132 (Comm) Mr Justice Foxton considered issues relating to payment of costs after the claimants had been unsuccessful in an application to amend the Particulars of Claim. …
HOW COSTS HAVE CHANGED SINCE THE WORLD WAS YOUNG: SOLICITOR’S APPEAL AGAINST A REFUSAL TO ORDER A STAY AND SECURITY FOR COSTS DISMISSED: APPEAL FOR AN ORDER THAT SOLICITORS REPLY TO PART 18 QUESTIONS ALLOWED
In the judgment today in Edwards (& others) -v- Slater and Gordon UK Limited [2022] EWHC 1091 (QB) Mr Justice Ritchie disallowed the defendant’s appeal in relation to issues relating to disclosure, funding and security for costs. He allowed the…
PART 36: JUDGES SHOULD NOT LET THEIR HEARTS RULE THEIR HEADS: CLAIMANT ACCEPTING AN OFFER LATE FACES FULL COSTS CONSEQUENCES THAT FLOW
In the judgment in MRA -v- The Education Fellowship Limited [2022] EWHC 1069 (QB). Master McCloud held that it was not unjust for the usual principles in relation to costs to apply following a claimant’s late acceptance of a defendant’s…
PART 36 BENEFITS PAID TO A SUCCESSFUL CLAIMANT: THE ISSUES CONSIDERED: IT WAS NOT UNJUST FOR THE USUAL PART 36 CONSEQUENCES TO APPLY
We are returning to the judgment in Ashford Borough Council & Anor v Wilson [2022] EWHC 988 (QB) Darryl Allen QC, sitting as a High Court judge. The earlier post looked at the issue of whether the defendant was bound by…
RELIEF FROM SANCTIONS: NOT ALL BAD REASONS FOR DEFAULT ARE EQUALLY BAD: A PARTY CANNOT ASSERT PREJUDICE BY BEING SILENT
In EXN v East Lancashire Hospitals NHS Trust & Anor [2022] EWHC 872 (QB) Mr Justice Turner allowed an appeal where a District Judge had refused to grant relief from sanctions. The judgment is particularly interesting in that it notes…
EXCESSIVE COSTS INCURRED IN ARGUING ABOUT COSTS: A PARTY OBTAINING RELIEF FROM SANCTIONS WAS CORRECTLY ORDERED TO PAY THE COSTS OF THE APPLICATION: “RULES EXIST FOR A REASON”
In Swivel UK Ltd v Tecnolumen GmbH & Anor [2022] EWHC 825 (Ch) Mr Justice Marcus Smith upheld the decision of a Master that a party that had obtained relief from sanctions should pay the costs of the application. It…
THE COURT SHOULD ASSESS COSTS SUMMARILY NOW: BUT THEY ARE SUBJECT TO A “SIGNIFICANT HAIRCUT”
One of the things I regularly do on this blog is to post judgments relating to the summary assessment of costs. These are not readily available elsewhere and this type of judgment is very popular with readers. The judgment of…
JUDGE VARIES ORDER SO SUMMARY ASSESSMENT OF COSTS REPLACES DETAILED ASSESSMENT: COSTS SUMMARILY ASSESSED AT £7,250,000
In Pipia v Bgeo Group Ltd [2022] EWHC 846 (Comm) Mr Justice Henshaw took the unusual step of replacing an order for detailed assessment with an order for a summary assessment and then assessing the costs. THE CASE The defendant…
DEFENDANTS HAVE TO PAY COSTS OF ATE PREMIUM: DEEMED ORDER FOR COSTS FOLLOWING ACCEPTANCE OF PART 36 OFFER INCLUDES THE COSTS THE ATE PREMIUM
In Dance v East Kent University Hospitals NHS Foundation Trust & Ors [2022] EWHC B9 (Costs) Costs Judge Leonard considered two ingenious arguments where the defendants attempted to avoid paying the claimant’s ATE premium. This involved consideration of the deemed…
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…
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