PART 36: A SUCCESSFUL LITIGANT CAN BE BULLISH: CLAIMANT BEATS ITS OWN PART 36 OFFER AND THERE WAS NOTHING UNJUST IN THE DEFENDANT PAYING THE PRICE
In Kivells Ltd v Torridge District Council [2019] EWHC 3210 (TCC) the claimant beat its own Part 36 offer (by a fair margin). HHJ Russen QC rejected the defendant’s argument that it would be unjust to apply the normal Part…
A CASE THAT SHOULD BE READ BY EVERY LAWYER WHO BILLS CLIENTS: CLAIM £84,000 – GET £8,000: PROVIDE ADEQUATE ESTIMATES OF COSTS OR ELSE…
The judgment of Master Leonard Dunbar v Virgo Consultancy Services Ltd [2019] EWHC B12 (Costs) provides an object lesson as to why lawyers must give a full and proper estimate of costs to their clients. The defendant solicitor sought £84,ooo…
WHY FAILING IN A SUMMARY JUDGMENT APPLICATION CAN BE EXPENSIVE: (£1,015,722 – EXPENSIVE)
In BTI 2014 LLC v Pricewaterhousecoopers LLP & Anor [2019] EWHC 3219 (Ch) Mr Justice Fancourt considered the appropriate order for costs when a defendant failed in an application for summary judgment. The defendants were ordered to pay the costs…
IS A CONDITIONAL FEE AGREEMENT A CONTENTIOUS BUSINESS AGREEMENT? WELL, IT DEPENDS… (& IT HAS CONSEQUENCES)
In Healys LLP v Partridge & Anor [2019] EWHC 2471 (Ch) Kelyn Bacon QC, sitting as a Deputy High Court Judge, considered the issue of whether a conditional fee agreement was a contentious business agreement. This has practical consequences in…
UNWARRANTED FRAUD ALLEGATION LEADS TO INDEMNITY COSTS BEING AWARDED
In Natixis SA v Marex Financial & Ors [2019] EWHC 2549 (Comm) an award of indemnity costs was made against a party who had alleged fraud all the way up to closing submissions. It highlights the dangers of pleading fraud…
FIXED COSTS NOT OVERTURNED BY THE TERMS OF AN AMBIGUOUS PART 36 OFFER: COURT OF APPEAL DECISION TODAY
In the judgment today in Ho v Adelekun [2019] EWCA Civ 1988 the Court of Appeal held that fixed costs still applied to a case where an offer of settlement did not expressly refer to costs being fixed. “…parties who…
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…
STAGE 3 PROCEEDINGS AND LATE SERVICE OF EVIDENCE: COURT OF APPEAL DECISION
The judgment of the Court of Appeal yesterday in Wickes Building Supplies Ltd v Blair [2019] EWCA Civ 1934 is an important one in relation to late service of evidence and Stage 3 of the Protocol. It shows the importance…
APPLYING FOR DISPENSATION FROM COURT FEES: TWO DIFFERENT CASES
I am grateful to my colleague Paul Hughes for sending me a copy of the judgment of District Judge Jenkinson in the case of Stone -v- Allianz Insurance PLC where Paul acted for the defendant. This, and the case of…
RELIEF FROM SANCTIONS: CANDOUR FROM THE APPLICANT AND NO EVIDENCE FROM THE DEFENDANT TO PROVE PREJUDICE
There is a report of a case where relief from sanctions was granted in Anglia Autoflow North America LLC and Another v Anglia Autoflow Ltd [2019] Costs LR 155. One thing that marks this case is the total candour from the…
THE RIDICULOUS RULES ABOUT PLEADING MITIGATION OF LOSS: DOES THE RULES COMMITTEE JUST NOT LISTEN (OR JUST NOT CARE)?
The previous post in this case on the judgment in Pepe’s Piri Piri Ltd & Anor v Muhammad Ali Junaid Food Trends Ltd (Now Dissolved) & Ors[2019] EWHC 2769 (QB) highlights the problems posed by one of the most ridiculous rules…
CLAIMANT’S LATE ACCEPTANCE OF PART 36 OFFER: UNCERTAINTY OF FUTURE OUTCOME NOT GROUNDS FOR MAKING A DIFFERENT COSTS ORDER
The judgment of Mrs Justice Lambert in Campbell -v- Ministry of Defence [2019] EWHC 2121 (QB) emphasises the difficulties for a claimant who has accepted a Part 36 offer late. The claimant had to bear the usual costs consequences and…
TRAWLING THROUGH THE CPR: FIXED COSTS CONSIDERED BY THE COURT OF APPEAL: COUNSEL’S FEES INCLUDED IN REGIME: CONSTRUING THE CPR AS A WHOLE
I am grateful to barrister Sarah Robson for sending me a copy of the judgment of the Court of Appeal today in Aldred -v- Cham [2019] EWCA Civ 1780. It is one of those occasions where the Court of Appeal…
CONDITIONAL FEE AGREEMENT IS ENFORCEABLE AFTER DEATH: HIGH COURT JUDGMENT TODAY
In Higgins & Co Lawyers Ltd -v- Evans [2019] EWHC 2809 (QB) Mr Justice Pushpinder Saini overturned a decision that a conditional fee agreement was not enforceable after death. THE CASE The deceased had signed a CFA agreement with the…
COURT HAS JURISDICTION TO MAKE AN INTERIM ORDER AS TO COSTS AFTER CLAIMANT HAS ACCEPTED A PART 36 OFFER: COURT OF APPEAL DECISION TODAY
In Global Assets Advisory Services Ltd & Anor v Grandlane Developments Ltd & Ors [2019] EWCA Civ 1764 the Court of Appeal confirmed that the court can make an interim order for costs after a claimant has accepted a Part…
A CRI DE COEUR FOR MORE MONEY WON’T GET YOU AN INTERIM PAYMENT ON ACCOUNT OF COSTS: MASTER EMPHASISES THE NEED FOR HARD EVIDENCE
In RXK v Hampshire Hospitals NHS Foundation Trust [2019] EWHC 2751 (QB) Master Cook made some important observations about the quality of evidence needed to obtain an interim order for costs in an ongoing case. (The judgment in X -v-…
QOCS IN “MIXED “CASES: THE COURT OF APPEAL SPEAKS
In the judgment today in Brown v Commissioner of Police of the Metropolis & Anor [2019] EWCA Civ 1724 the Court of Appeal considered the issue of QOCS in “mixed cases”. The judgment requires careful reading. Generally speaking all personal…
THE TRIAL JUDGE SHOULD HAVE FOUND THAT THE CLAIMANT WAS FUNDAMENTALLY DISHONEST: INADEQUATE DISCLOSURE LEADS TO QOCS BEING DISAPPLIED
In Haider v DSM Demolition Ltd [2019] EWHC 2712 (QB) Mr Justice Julian Knowles refused a claimant’s appeal against a finding that the defendant was not negligent. He granted the defendant relief from sanctions and allowed an appeal against a…
DISTRICT JUDGE SHOULD NOT HAVE “PARTIALLY” RECUSED THEMSELVES: THINGS THAT SHOULD NEVER HAVE BEEN IN A WITNESS STATEMENT: A VERY INTERESTING ASSESSMENT OF COSTS…
I am grateful to Simon Fisher from DWF for providing me a copy of the judgment in Akers -v- Kirlkland [2019] EWHC 2176 (QB) Mr Justice Waksman discussed, in detail, the circumstances in which a judge should recuse themselves and…
SUMMARY ASSESSMENT AND HOURLY RATES: “SOLICITORS PROVIDING SUCH SKILL AND EXPERTISE ARE ENTITLED TO CHARGE THE MARKET HOURLY RATE FOR THEIR AREA OF PRACTICE”
In Ohpen Operations UK Ltd v Invesco Fund Managers Ltd [2019] EWHC 2504 (TCC) Mrs Justice O’Farrell carried out a summary assessment of costs. She also had something to say in relation to hourly rates. There is a succinct review…
WHO SACKED WHO? HIGH COURT DECISION AS TO WHETHER THE CLIENT OR THE SOLICITOR ENDED THE RETAINER
In Walsh v Greystone Financial Services Ltd [2019] EWHC 2573 (Ch) Mr Justice Nugee had to decide whether it was the client or the solicitor who ended the retainer. THE CASE At the end of a trial at which the…
COURT OF APPEAL REFUSES APPEAL AGAINST ORDER FOR INDEMNITY COSTS: PARTIES WHO ARE JOINED TO A SPECULATIVE ENTERPRISE IN LITIGATION SHOULD EVALUATE THEIR POSITION WITH CARE
In Ford & Anor v Bennett & Anor [2019] EWCA Civ 1604 the Court of Appeal dismissed an appeal against a trial judge’s decision to award indemnity costs. The judgment contains a lesson to “additional parties” to litigation. “Parties who…
SOLICITORS WHO ARE REPRESENTED AT COURT TO PROTECT LEGAL PROFESSIONAL PRIVILEGE ISSUES ARE ENTITLED TO THEIR COSTS
One other aspect of the decision in Addlesee & Ors v Dentons Europe LLP [2019] EWCA Civ 1600 that is worth looking at is the appeal in relation to costs. The Court of Appeal rejected the appellants argument that the…
ELECTRONIC WORKING IN THE SENIOR COURTS COSTS OFFICE: USEFUL LINKS
The Electronic Working Pilot Scheme in the Senior Courts Costs Office comes into force on the 7th October. There are some useful links on the working of the sceme. USEFUL LINKS A summary on the Courts and Tribunal Judiciary website …
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…
COURT OF APPEAL TO CONSIDER IMPACT OF TRANSFERRING CASE FROM LEGAL AID TO CFA:
I am grateful to Tom Jenkinson from Bolt Burdon Kemp for letting me know that the Court of Appeal has granted permission to appeal in the case of XDE v North Middlesex University Hospital Trust [2019] EWHC 1482 (QB) XDE…
INTERIM PAYMENTS ON ACCOUNT OF COSTS: A RECENT EXAMPLE AND USEFUL LINKS
“Cashflow is the lifeblood of business”, is a common maxim. This applies in the legal profession as much as anywhere else. Interim payments on account of costs is an important issue for litigators and their clients. This was considered in…
PAYING EXPERT’S FEES: INFORMING AN EXPERT THAT A HEARING IS CANCELLED AND – GETTING STRUCK OFF THE ROLL OF SOLICITORS …
The judgment in the case of Clegg v Solicitors Regulation Authority [2019] EWHC 2408. A solicitor was struck off, in circumstances that could easily have been avoided. It required the simple step of informing an expert that a trial had…
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…
DE MINIMIS BREACH OF RULES DID NOT LEAD TO PART 36 OFFER BEING INVALID
In Momonakaya v the Ministry of Defence [2019] EWHC 480 (QB) HHJ Blair QC considered whether a claimant had properly accepted a Part 36 offer. It was held that an offer that breached the rules in a de minimis way was…
AN OFFER TO SETTLE FOR NO DAMAGES CAN STILL BE A VALID PART 36 OFFER: APPEAL AGAINST NO ORDER FOR COSTS ALLOWED (IN PART)
In MR v Commissioner of Police for the Metropolis [2019] EWHC 1970 (QB) Mrs Justice McGowan allowed an appeal as to costs in a issue relating to Part 36. She held that the trial judge had erred in making no…
WHY IT IS IMPORTANT LITIGATORS KNOW HOW TO COMPUTE TIME PROPERLY: 7 DAYS MEANS 7 DAYS: APPLICATION TWO DAYS LATE: CLAIMANT COMES TO GRIEF
In Evans v Pinsent Masons LLP [2019] EWHC 2150 (QB) Mr Justice Martin Spencer overturned a decision granting relief from sanctions. A major issue arose out of confusion by the claimant’s solicitors over the calculation of the time period. This…
“YOURS IS BIGGER THAN MINE”: COMPARISON OF COSTS NOT ALWAYS APPROPRIATE
In Monex Europe Ltd v Pothecary & Anor [2019] EWHC 2204 (QB) Clive Sheldon QC (sitting as a Deputy High Court Judge) did not accept an argument that the fact that defendants’ costs were much higher than the claimant’s figures…
NO COSTS ORDER AGAINST SOLICITORS OR COUNSEL WHO WERE ACTING ON A CONDITIONAL FEE BASIS
In Willers v Joyce & Ors [2019] EWHC 2183 (Ch) Lady Justice Rose dismissed an application for costs against solicitors and counsel who had represented an unsuccessful party on a conditional fee basis. “… there is a strong public interest…
A SOLICITOR WHO FILES AN ACKNOWLEDGMENT OF SERVICE STAYS ON THE RECORD UNTIL A NOTICE OF CHANGE OR THEY MAKE AN APPLICATION TO BE REMOVED
In Ashley & Anor v Jimenez [2019] EWHC 1806 (Ch) Chief Master Marsh rejected an argument that service on a solicitor who given their address for service in the acknowledgement of service was not good service of an application. For…
APPLICATION FOR EXTENSION OF TIME FOR DETAILED ASSESSMENT PROCEEDINGS REFUSED:
There are many lessons that litigation lawyers can learn from the judgment of Master Leonard in Rattan v Carter-Ruck Solicitors [2019] EWHC B9 (Costs). It is a case where a client agreed to a settlement and then, essentially, sought to…
WHEN YOU ARE CHALLENGING A PROVISIONAL ASSESSMENT “BE PREPARED”: MASTER FINDS THAT COURT COSTS OFFICERS DO HAVE JURISDICTION TO CONDUCT PROVISIONAL ASSESSMENTS: THE LIMITED SCOPE OF AN APPEAL FROM A PROVISIONAL ASSESSMENT
I am grateful to my colleague Robin Dunne for sending me a copy of the decision of Master Leonard in PME -v- The Scout Association (30/07/2019). 1. JUDGMENT PME (003). This deals with two issues (i) the jurisdiction of…
CLAIMANT’S PART 36 “SUBJECT TO A NIL CRU” WAS A VALID OFFER: IF THE DEFENDANT WAS CONFUSED THEY SHOULD HAVE SOUGHT CLARIFICATION
The judgment of District Judge Hickinbottom in Gibbons -v- Rotherham Doncaster and South Humber NHS Foundation Trust (o4/06/2019), discussed in an earlier post, also has an interesting section in relation to a Part 36 offer. “It seems to me the Defendant could…
CASE FALLING OUTSIDE THE FIXED COSTS REGIME: ASSAULT BY A VULNERABLE ADULT: REPORT OF A FIRST INSTANCE DECISION: FIXED COSTS DO NOT APPLY
I am grateful to solicitor John McQuater for sending me a copy of the judgment of District Judge Hickinbottom in Gibbons -v- Rotherham Doncaster and South Humber NHS Foundation Trust (o4/06/2019). It concerns the question of whether an assault by…
RECOVERING THE COST OF ATTENDING THE INQUEST: MUST BE BOTH RELEVANT AND PROPORTIONATE (BUT PROPORTIONALITY IS NOT JUST ABOUT MONEY)
The judgment today in Fullick & Ors v The Commissioner of Police for the Metropolis [2019] EWHC 1941 (QB) deals with the, often challenging, question of whether the costs of attending an inquest is recoverable in cases where the claimant…
COURT REFUSES TO MAKE ORDER THAT A DEFENDANT DISCLOSES FUNDING ARRANGEMENTS
In Rudd v Bridle & Anor [2019] EWHC 1986 (QB) Mr Justice Warby refused a claimant’s application for disclosure of the defendants’ funding arrangements. “Beyond this is the common-sense point, that the Court will not be keen to allow…
NO YOU ARE NOT GOING TO RECOVER £25,000 FOR LEADING COUNSEL TO ATTEND A LOW LEVEL HEARING – NOT EVEN ON AN INDEMNITY BASIS: COURT OF APPEAL DECISION
In Timokhina v Timokhin [2019] EWCA Civ 1284 the Court of Appeal overturned an order that a mother pay counsel’s fees of certain hearings. The judgment is interesting in that costs were disallowed (inter partes) as unreasonable even when the…
PROPORTIONALITY AND PREMIUMS IN CLINICAL NEGLIGENCE CASES: COURT OF APPEAL JUDGMENT TODAY
In West -v- Stockport NHS Foundation Trust [2019] EWCA Civ 1220 the Court of Appeal considered the question of proportionality in relation to clinical negligence actions and the “recoverable” element of ATE insurance. I am grateful to Sean Linley for…
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…
PROPORTIONALITY: SHOULD HINDSIGHT BE A FACTOR? EXTRACTS FROM O’HARE AND BROWNE ON CIVIL LITIGATION (YOU SAW IT HERE FIRST…)
I am grateful to John O’Hare for sending me an extract from the next edition of O’Hare and Browne on Civil Litigation (19th edition). It deals with proportionality and, in particular, whether hindsight should be a factor in assessing proportionality. …
CIVIL PROCEDURE BACK TO BASICS 53A: PART 36 AND COSTS AFTER THE COURT HAS LIMITED THE BUDGET TO COURT FEES: ALI -v-CHANNEL 5
Shortly after I completed the post on Part 36 offers after the costs budget has been confined to court fees Professor Dominic Regan reminded me that there is another example in Ali & Anor v Channel 5 Broadcast Ltd [2018] EWHC…
CIVIL PROCEDURE BACK TO BASICS 53: PART 36 AND COSTS AFTER THE COURT HAS LIMITED THE BUDGET TO COURT FEES
This may be an ambitious subject for the back to basics series. However here I want to look at the situation where a party has failed to file their costs budget timeously and the budget has been confined to court…
CIVIL PROCEDURE BACK TO BASICS 51: BULLOCK AND SANDERSON ORDERS: COSTS WHERE THERE ARE MULTIPLE DEFENDANTS
When writing the previous post about a Bullock order it struck me that there may be some people not quite certain of what a “Bullock order ” or “Sanderson order” is. This gives rise to a need to explain those…
THE TRIAL JUDGE COULD SAY BULLOCKS TO THE COST ORDER: ON APPEAL, HOWEVER, THE CLAIMANT SHOULD NOT HAVE BEEN SO BULLISH
In Fouladi v Darout Ltd & Ors [2019] EWHC 1674 (Ch) Mr Justice Henry Carr refused an appeal against the making of a “Bullock” order in relation to the costs of a fourth defendant. The claimant, however, was not successful…
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