COST BITES 358: WHAT DOES THE COURT DO IF THE PARTIES HAVE COMPROMISED AN APPLICATION BUT CANNOT AGREE ON WHO SHOULD PAY THE COSTS?
There are occasions where the parties agree the terms of an application but cannot agree who should pay the costs – the court is asked to adjudicate. There are difficulties for the judge in this situation. In particular judges are…
COST BITES 359: FAILING TO SIGN CONSENT ORDER LEADS TO £44,000 IN COSTS: “GOING SILENT” IS NOT A CHEAP OPTION…
Just a quick warning here about the costs of not signing a consent order having agreed to so something. It can be expensive. We have a case here where it cost £44,000 when the claimant made an application because the…
COST BITES 358: JUDGE DOES NOT AWARD COSTS ON AN APPLICATION FOR PERMISSION TO APPEAL BECAUSE THE RESPONDENT (INITIALLY) ASKED FOR TOO MUCH
It is not unusual for a party, on an interlocutory application, to put in a schedule of costs that covers the entire action. Sometimes this is justified, often it is not. Here we have a case where this backfired. The initial…
![PART 36 ISSUES: CAN A JUDGE CONSIDER INTEREST UNDER PART 36 WHEN INTEREST HAD BEEN AN ISSUE DETERMINED IN THE ACTION? [SPOILER - YES THEY CAN]](https://i0.wp.com/www.civillitigationbrief.com/wp-content/uploads/2026/02/Par36Interest.png?resize=150%2C150&ssl=1)
PART 36 ISSUES: CAN A JUDGE CONSIDER INTEREST UNDER PART 36 WHEN INTEREST HAD BEEN AN ISSUE DETERMINED IN THE ACTION? [SPOILER – YES THEY CAN]
The judgment here considers an interesting point in relation to Part 36. The judge had, in the substantive judgment, considered issues relating to the interest to be paid by the defendant. The defendant had failed to beat a Part 36…
COST BITES 357: DISBURSEMENTS: WHAT IS A REASONABLE AND PROPORTIONAL INTERPRETER’S FEE? NOTE OF THE JUDGMENT ON APPEAL (AND THAT PERENNIAL ISSUE OF WHETHER A BREAKDOWN SHOULD BE PROVIDED…)
I am grateful to Ben Williams KC for sending me a note of the judgment yesterday which was the appeal against the decision in Santiago v Motor Insurers’ Bureau (The County Court at Central London, 22nd February 2025). The second time…
COST BITES 356: DO FIXED COSTS APPLY WHEN THE CASE IS TRANSFERRED AWAY FROM A FIXED COSTS REGIME TO ONE WHERE COSTS ARE “AT LARGE”
Here we are considering a Court of Appeal decision about what costs order should be made when an action is transferred from a fixed costs regime to one where costs are at large. On the face of it the decision…
COST BITES 355: VARYING A BUDGET (3): PROPOSED VARIATIONS DISALLOWED BECAUSE THEY WERE NOT MADE “PROMPTLY”
This is the final part of today’s trilogy considering applications to vary costs budget. We have already seen that the judge determined that many issues in the case were “significant developments” which could, in theory, lead to a variation of…
COST BITES 354: VARYING A BUDGET (2) HOW WAS THE ISSUE OF “SIGNIFICANT DEVELOPMENTS” CONSIDERED IN PRACTICE?
The previous post looked at the judge’s consideration of the principles relating to variations in a costs budget. Here we look at how this worked out in practice with the judge considering whether various issues amounted to “significant developments”. Some…
COST BITES 353: VARYING A COSTS BUDGETS (1): THE PRINCIPLES CONSIDERED: WHAT IS MEANT BY “SIGNIFICANT DEVELOPMENTS”?
We are taking a detailed look at a judgment that deals with proposals to vary costs budgets. This post will look at the judge’s considerations of the rules, principles and guidance that relates to variation of budgets. Later posts will…
COST BITES 351: WHAT HAPPENED TO THOSE COSTS BUDGETS IN PRACTICE? “COMPARE AND MATCH” IS NOT ALWAYS AN ACCURATE GUIDE:THE KEY QUESTION IS – WHO WILL BE DOING THE MOST WORK?
The previous post looked at the judge’s general observations in this case. Here we look how those principles were applied in practice. It is clear that the arguments that the costs were excessive by way of comparison did not always…
COST BITES 350: KNOWING HOW JUDGES APPROACH BUDGETING WHEN ONE SIDE SEEKS MUCH MORE THAN ANOTHER: IS THE COURT A “SLAVE TO COMPARISON”?
It is always important, and enlightening, to have a close look at judicial observations on the nature of costs budgeting. We have a useful judgment here. The judge considered the applicable principles and guidance before carrying out budgeting in a…
COST BITES 348 : A PARTY SEEKING SECURITY FOR COSTS SHOULD HAVE INCLUDED TIME SPENT IN SETTLEMENT AND ADR
There is an interesting comment at the end of the judgment. The judge made an order for security for costs. However he also expressed concern that the defendant’s estimated costs did not include anything in relation to the costs of…
COST BITES 347: CLAIMANTS FAILURE TO “CUT THEIR CLOTH” MEANT COSTS OF BUDGETING PROCESS WERE REDUCED BY 20%
We have seen several cases where an “overambitious” costs budget has led to a reduction or disallowance in the costs of budgeting. We have another example here. The claimants were effectively given a second chance to produce budgets having had…
COST BITES 346: CONDUCT, “PART 36 OFFERS” AND THE STATUTORY PRESUMPTION ON A SOLICITORS ACT ASSESSMENT: THE COSTS OF “ASSESSMENT” ARE DISTINCT TO THE COSTS OF “PROCEEDINGS”
In this judgment given yesterday a Costs Judge considered the relevance of conduct in a Solicitors Act assessment. In particular whether an offer expressed as a “Part 36 offer” by the claimant client could amount to “special circumstances” to displace…
WHAT TO DO WHEN THINGS GO WRONG IN LITIGATION(1): A PRIMER FOR “WHEN THE SKY IS FALLING”
Very little (if any) of the legal curriculum is devoted to what to do when things go wrong. Not enough (in my view) is devoted to preventing things go wrong. However here we concentrate on what do when something goes…
COST BITES 345: RECEIVING PARTY’S FAILURE TO FILE ALL RELEVANT DOCUMENTS ON A PROVISIONAL ASSESSMENT RENDERS THE ASSESSMENT A NULLITY: CLEVER AND COMPLEX ARGUMENTS DID NOT PREVAIL
What are the consequences if a party lodging the documents for a provisional assessment of costs fails to file all the relevant documents and the assessment goes ahead without the judge seeing all the points of dispute? . This is…
COST BITES 344: INSOLVENCY COURT HAS POWER TO MAKE A PRO BONO COSTS ORDER FOR THE COSTS OF COUNSEL: POINTS TO WARN ABOUT IF YOUR OPPONENTS ARE ACTING ON A PRO BONO BASIS
We have looked at pro bono costs orders several times. This case has an unusual twist in that the case was an insolvency case. The judge considered the Insolvency Rules and found that the court had power to make an…
COST BITES 343: AN OPPORTUNITY HAVE A CLOSE LOOK AT A CASE BEING BUDGETED: “I HAVE NO DOUBT THAT THE OVERALL FIGURE PUT FORWARD IS PRIMA FACIE DISPROPORTIONATE”
It is not often we get a chance to look at a budgeting decision. These cases are interesting and important because they show some light on the process. They also show the factors the courts consider when undertaking the budgeting…
COST BITES 342: THE CLAIMANTS’ HYPERBOLIC APPROACH TO ASSESSMENT COST THEM DEARLY: PERSONAL LIABILITY FOR £132,400 FOLLOWING THEIR CHALLENGE OF A BILL OF £147,436.33
If a case were needed to warn about the dangers of litigation this is one of them. The claimants challenged a solicitor’s bill of £147,436.33, the bill was reduced by some £18,000 (less than the solicitor had offered to settle…
PART 36: RECENT DEVELOPMENTS AND PRACTICAL CONSEQUENCES: DETAILS OF THE WEBINAR ON THE 26th FEBRUARY 2025
A working — indeed, a detailed — knowledge of how Part 36 operates in practice is essential for all litigators. Although it is famously described as a “self-contained code”, it is a code whose application continues to develop, often in…
COST BITES 341: THIS ASSESSMENT SHOULD NOT LAST 50 DAYS: COURT OF APPEAL ADVOCATES “SAMPLING” APPROACH TO ASSESSMENT OF £44 MILLION BILL OF COSTS
It is rare for a court, particularly the Court of Appeal, to take one step aside from the issue being determined and make some general observations on the process of the assessment of costs. This is one of those rare…
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 340: CLAIMANTS’ CONDUCT, FAILURE TO COMPLY WITH PRE-ACTION PROTOCOL AND EFFECTIVE REFUSAL TO MEDIATE LEADS TO NO ORDER FOR COSTS
Here we have a case where the claimants were (largely) successful but the court made no order for costs between the parties. There were three major factors (i) the way in which the claimants conducted the action; (ii) the failure…
COST BITES 339: SOLICITOR’S ATTEMPT TO OVERTURN A DECISION OF THE LEGAL OMBUDSMAN WAS UNSUCCESSFUL: IT WAS ENTITLED TO ORDER REPAYMENT OF ALL THE FEES IN ADDITION TO £50,000 COMPENSATION
There are many lessons to learn from this case: (i) the nature, extent and power of the Legal Ombudsman; (ii) the importance of transparency and accuracy when giving an estimate as to fees, particularly in litigation (iii) the very limited…
COST BITES 338: COURT AWARDS THE DEFENDANT INDEMNITY COSTS: THE CLAIMANT’S HAD AN “ENTIRELY, UNREASONABLE AND ALMOST IRRATIONAL APPROACH TO THIS LITIGATION”
We have looked many times at cases where the courts have considered whether or not costs should be awarded on an indemnity basis. I do not recall a judgment where the judge has decided this issue so emphatically. There were…
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…
SHOULD A LOSING PARTY FACE THE NORMAL CONSEQUENCES OF FAILING TO BEAT A PART 36 OFFER? A REMINDER THAT THIS IS A HIGH HURDLE WITH A “FORMIDABLE BURDEN”
A litigant who fails to beat a Part 36 offer can normally expect to face the consequences set out in the rules. There is an exception if that litigant can satisfy the court that it is “unjust” for those consequences…
PART 36: DOES A JUDICIAL READING DAY COUNT IN THE CALCULATION OF “21 DAYS” ? WHAT A DIFFERENCE A (READING) DAY MAKES…
We have seen numerous cases on this blog where matters have been left the “last minute” and the rules as to the calculation of time become important. Here we have an interesting example in relation to Part 36. An offer…
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 332 : COURT MAKES AN ORDER FOR INTERIM PAYMENT OF COSTS OF £43 MILLION – AND THIS IS AFTER TAKING A “CAUTIOUS APPROACH” TO THE CLAIMANTS’ EVIDENCE
This judgment given today contains a number of important points in relation to costs. The headline point is obviously an interim award of £43 million was made. This was actually less than 50% of the sum being sought. One of…
COST BITES 331: SOLICITOR FAILS TO SHOW THEY WERE OWED £573,529 IN COSTS: NEITHER A LIEN OR THE LEGAL AID CHARGE NECESSARILY GIVES RISE TO A DEBT FROM THE CLIENT
This is an unusual case where a third party challenged a solicitor’s right to be a creditor in an insolvency arrangement. The third party argued that the sums claimed by the solicitors were not in fact recoverable from the respondent. …
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…
BACK TO BASICS MONDAY: DO NOT MENTION A PART 36 OFFER TO THE TRIAL JUDGE BEFORE THE TRIAL(OR DURING IT FOR THAT MATTER…)
The first time I wrote on this topic many practitioners expressed surprise that I had written something so very “basic”. Some readers were incredulous. However, as we see below, others shared their experiences. This rule is not known, or not…
PART 36 IN THE COURT OF APPEAL TODAY: DIGGING DEEPER 3: SO WHY DID THE CLAIMANT LOSE? PLUS – THE STING IN THE TAIL FOR DEFENDANTS…
Earlier posts have shown that the claimant was successful on two of the key issues in relation to the appeal. However litigation can be cruel. A litigant can win on many issues but still lose the case. So it is…
PART 36 IN THE COURT OF APPEAL TODAY: DIGGING DEEPER 2: WAS AN OFFER ON LIABILITY EFFECTIVE IN THIS CONTEXT?
We continue with the detailed examination of the Court of Appeal decision on Part 36 this morning. This aspect of the case is particularly important because, again, although the claimant lost the appeal he won on this particular issue. That…
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 326: DEFENDANT SUCCESSFUL IN OBTAINING A NON-PARTY COSTS ORDER: FARES FAIR IN THE BUS STATION CASE…
This judgment today is an interesting illustration of the fact that those providing support to a party can find themselves the subject of a non-party costs order. In this case the claimant company was in liquidation. The respondents to the…
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 13: WHAT ARE PEOPLE READING?
It is always interesting to look back and see what are the most popular posts each year. Sometimes this contains surprises, sometimes it says something about the state (or at least the interests) of the legal profession. Here are…
You must be logged in to post a comment.