INCURRED COSTS AND COSTS BUDGETING: TWO RECENT CASES
Two recent cases have considered the significance of incurred costs in costs budgeting. These two cases indicate: 1. Incurred costs do not form part of the budgeting process (but can be scrutinised at assessment, including on the issue of whether…
DON’T STOP ME NOW*: CLIFF’S COSTS BUDGETING: INCURRED COSTS; THE CAP ON THE COSTS OF BUDGETING AND PREPARATION FOR TRIAL
In Sir Cliff Richard OBE -v- The BBC & Chief Constable of South Yorkshire Police [2017] EWHC 1666(Ch) Chief Master Marsh declined an invitation to make any observations about incurred costs. The case: Has an interesting (and important) discussion of…
A SOLICITOR LLP IS NOT A LITIGANT IN PERSON (AND CAN CLAIM FULL COSTS)
NB on 1st March 2018 Litigation Futures reported that the Supreme Court had refused permission to appeal in this case. The Court noted ““This is an important point of principle which would be better considered by the Civil Procedure Rule…
HARRISON -v- COVENTRY: THE COMMENTARY SO FAR: USEFUL LINKS
The Court of Appeal decision Harrison -v- University Hospitals Coventry & Warwickshire Hospital NHS Trust [2017] EWCA Civ 792 is a significant one. To help consider its practical significance here are links to the commentary on the case. (I…
QOCS, SET OFF AND COSTS: THE COURT DOES NOT HAVE POWER TO SET OFF COSTS AGAINST COSTS: COUNTY COURT DECISION
In Darini -v- Markerstudy Group (24th April 2017) His Honour Judge Dight considered an important issue in relation to set off and costs. A copy of the judgment is available here. HMC25855_DariniOlsoyvMarkerstudy_ApprovedJudgment_24042017 (2) and has kindly been provided by Gavin Lampert…
GET £15,000 FOR YOUR COSTS PAY £20,000 IN COSTS: CONDITIONAL FEE AGREEMENT UNFAIR AND UNREASONABLE AND WAS SET ASIDE
In Vilvarajah -v- West London Law Limited [2017] EWHC B23 (Costs) Master Gordon Saker declared a conditional fee agreement unreasonable and set it aside. The history and circumstances of this action make for interesting reading. “There is no correspondence between…
NON-PARTY COSTS ORDER MADE AGAINST CAR HIRE FIRM: ANOTHER SKIRMISH IN A FORENSIC WAR
The opening words of Mr Justice Turner’s judgment in Select Car Rentals (North West) Limited -v- Esure Services Limited [2017] EWHC 1434 (QB) contain an undeniable truth. The judge was upholding a decision to award costs against a car hire…
SETTING ASIDE DISCONTINUANCE AND DISAPPLYING QOCS: A HIGH COURT DECISION
In Shaw -v- Medtronic [2017] EWHC 1397 (QB) Mr Justice Lavender considered issues relating to the setting aside of notices of discontinuance and disapplying QOCS. He declined to set aside a notice of discontinuance or give permission to enforce costs…
SKELETON ARGUMENTS TOO LONG & AMOUNT OF DOCUMENTS “ABSURD”: A JUSTIFIABLE JUDICIAL COMPLAINT
In ICAP Management Services Limited -v- Berry [2017] EWHC 1321 (QB) Mr Justice Garnham added his voice to those judges who have protested about the length of skeleton arguments and written submissions and the burden of unnecessary documents. “It is…
A NUMBER OF CHALLENGES TO THE ENFORCEABILITY OF A DAMAGES BASED AGREEMENT: MASTER MAKES ORDER FOR A SPLIT TRIAL
In Lexlaw Ltd -v- Zuberi [2017] EWHC 1350 (Ch) Master Clark considered challenges to the validity of a damages based agreement between solicitor and client. It was decided that the question of the enforceability of the agreement should be tried…
DEFERMENT OF PAYMENT OF COSTS NOT PERMITTED: RELIEF FROM SANCTIONS REFUSED: 7 DAYS LATE WAS “SERIOUS AND SIGNIFICANT”
In The Queen on the application of Bhandal -v- HM Revenue and Customs [2016] EWHC 3387 (Admin) Mr Justice Holroyde dismissed an application deferment of an order to pay costs and an application for relief from sanctions in making the…
WHY YOU SHOULD NEVER JUDGE A BOOK BY ITS COVER: THE UNDERWOOD TRILOGY
There are three volumes in Kerry Underwood’s guide to “Kerry on Personal Injury Small Claims Portals and Fixed costs”. Each has Kerry’s photo on the front. Should that put you off? As ever I have a “quick” review and a…
AGREEING EXTENSIONS OF TIME: REFUSAL TO AGREE CONTRARY TO THE OVERRIDING OBJECTIVE HAS CONSEQUENCES IN COSTS
When should a party agree an extension of time? In Emmanuel -v- The Commissioners for Her Majesty’s Revenue and Customs [2017] EWHC 1253 (Ch) Her Honour Judge Karen Walden Smith made some telling observations . “… in my judgment the…
TALES FROM THE APIL CONFERENCE V: COURT FEE REMISSION: USEFUL LINKS
I attended the session on court fees. One part of this related to the increasing importance of court fee remissions. Claimants have to know the rules and, before they pay any fee, be certain that their client is eligible. Sometimes…
COSTS AT THE END OF THE CASE – WHO IS THE REAL WINNER? (AND MORE ABOUT FAILING TO PROVE DAMAGES)
It is uncertain how much a three week jury trial in the High Court will cost. It is certain that it costs a great deal more than the awards of £5,400 and £5,700 Mrs Justice McGowan awarded to the claimants…
CHANGING FROM LEGAL AID TO CFA: THE COURT OF APPEAL DECISION
This blog has followed the cases that arose out of decisions to switch from public funding to legal aid. In Hyde -v- Milton Keynes NHS Foundation Trust [2017] EWCA Civ 399 the Court of Appeal has given a judgment that…
EXTRAORDINARY AMOUNT OF COSTS CAUSES JUDGE GREAT CONCERN: RBS COSTS ESTIMATES GREATLY EXCEEDED – NOW £129 MILLION
The RBS Rights Issue Litigation is clearly a major and unusual case. However costs have to be reasonable and proportionate even (and perhaps especially) in this type of litigation. This is made clear in the judgment of Mr Justice Hildyard…
COSTS, BUDGETS AND “STRATEGY”: THE CASES TO READ
Is it appropriate to talk about “strategy” in relation to costs budgeting? It probably says a lot that I am at the APIL annual conference and this is one of the things being talked about in the reception at the…
NO OBLIGATION TO RETURN STAGE ONE PROTOCOL COSTS: COURT OF APPEAL DECISION TODAY
In JC and A Solicitors Limited -v- Iqbal [2017] EWCA Civ 355 the Court of Appeal held that there is no obligation to repay costs paid at stage 1 on the Protocol when claimants failed to pursue the matter further….
BOUNDARIES, BORDERS AND COSTS: IF YOU LEAVE THE ISSUE OF COSTS TO THE JUDGE YOU MAY NOT GET THE ANSWER YOU WANT
The judgment of the Court of Appeal in Powles -v- Reeves [2016] EWCA Civ 1375 shows the dangers of not being able to agree the principle of who should pay the costs of litigation. It shows the dangers of just…
MACHISMO OR MADNESS? THE DANGERS OF MAKING A “TIME LIMITED” OFFER OR WITHDRAWING A PART 36 OFFER
There may be tactical advantages to making a “time limited” offer, or withdrawing a Part 36 offer after 21 days. However this can backfire badly. We have already looked at the decision in Thakkar -v- Singh [2017] EWCA 117 in…
MERRIX NOT BEING APPEALED (BUT HARRISON IS – WATCH THIS SPACE)
The decision in Merrix -v- Heart of England NHS Foundation Trust [2017] EWHC 346 (QB) is not being appealed by the defendant. The rationale is, apparently, that the defendant did not want to risk losing the listing of the appeal in Harrison…
MEDIATION AND LITIGATION: ANOTHER EXAMPLE OF THE DANGERS OF IGNORING OFFERS TO MEDIATE
This blog reports regularly on cases where the courts have highlighted the advantages of mediation and the dangers of rejecting an offer to mediate. The latest note of cautious comes from the judgment of Lord Justice Jackson in Thakkar -v-…
FILING FORM H: WHEN DOES A CASE HAVE A VALUE OF “LESS THAN £50,000”? A POINT TO WATCH
There are now several formats for Form H. The “short” one page version is now used in cases where the value is between £25,000 and “less than £50,000”. Some judges are interpreting this strictly to read between £25,000 and £49,999″….
INTERIM PAYMENTS ON ACCOUNT OF COSTS: READ (AND CITE) THE CORRECT CHAPTER OF COOK ON COSTS
I am grateful to John McQuater for sending me a copy of an order from HH Judge Robinson, It relates to an application on account of costs. The appeal was (for obvious reasons) compromised. However the robust terms of the…
NO ISSUE BASED COSTS ORDER WHEN UNSUCCESSFUL CLAIMANT HAD TURNED DOWN A PART 36 OFFER OF £500,000
In Lyons -v- Fox Williams LLP [2017] EWHC 532 (QB) Mr Justice Turner considered issues relating to costs after a claimant had been unsuccessful in a claim for professional negligence. THE CASE The claimant had been unsuccessful in a claim…
“AGREED” COSTS BUDGETS NOT APPROVED BY THE COURT : THAT QC IS JUST TOO EXPENSIVE – THINK AGAIN
In Brown -v- BCA Trading Limited [2016] EWHC 1464 (Ch) Mr Registrar Jones refused to approve “agreed” budgets. He held that the fees of leading counsel were too high and needed to be reconsidered. This shows that an agreement between…
COSTS AFTER NOMINAL DAMAGES AND PART 36 OFFERS: THE CLAIMANTS WHO TURNED DOWN £1.5 MILLION AND GOT £2.00 INSTEAD
We looked at the decision of Mr Justice Leggatt in Marathon Asset Management LLP -v- Seddon [2017] EWHC 300 (Comm) in an earlier post. The judge held that the defendants were in breach but that the claimants had suffered no loss….
COSTS NORMALLY FOLLOW THE EVENT: SUCCESSFUL DEFENDANT ENTITLED TO 100% OF ITS COSTS
We looked at the decision in Oldcorn -v- Southern Water Services Ltd [2017] EWHC in an earlier post. A second judgment on the case on the issue of costs is reported at [2017] EWHC 460 (TCC). . The successful defendant was…
COSTS, CONDUCT, PART 36, COSTS BUDGETING: THE SECOND JUDGMENT IN GIANT CAR LIMITED
The previous post looked at the judgment of Mr Stephen Furst QC in Car Giant Limited -v- the Mayor and Burgesses of the London Borough of Hammersmith [2017] EWHC 197 (TCC). Here we look at the subsequent judgment on costs at [2017]…
SOLICITOR’S BILL AND SPECIAL CIRCUMSTANCES WITH £4.2 MILLION AT STAKE
The case of Eurasian Natural Resources -v- Dechert LLP [2017] EWHC B4 (Costs) has already attracted much attention. A previous hearing before the Court of Appeal involved no less than five QCs just to determine whether aspects of the solicitor…
COSTS AGAINST NON-PARTIES: “FOR THE BENEFIT OF MR…. BAILEY”
In Sony/ATV Music -v- WMPC Music (In liquidation) & Bailey [2017]EWHC389 (Ch) Mr Justice Arnold made an award against a non-party. The judgment reviews the relevant law in detail. “It is therefore necessary to consider what difference it would have…
MERRIX ON APPEAL TO THE HIGH COURT JUDGE: COSTS BUDGETING IS AS DEFINITIVE FOR PAYING PARTY AS IT IS FOR RECEIVING PARTY: JUDGMENT TODAY
In the judgment today in Merrix -v- Heart of England NHS Foundation Trust [2017] EWHC 346 (QB) Mrs Justice Carr allowed an appeal about the significance of costs budgeting when it comes to assessment. “In my judgment, the answer to…
LEGAL COMPANY ENTITLED TO CHARGE FOR ITS TIME: SHACKLETON EXPLORES NEW GROUND
In Shackleton -v-Al Shamsi [2017] EWHC 304 (Comm) Mr Justice Teare considered the question of whether a company providing legal services which was the claimant in the action could recover costs for the time of its “proprietor” spent in bringing…
PROPORTIONALITY, ASSESSMENT AND PREMIUMS: THE NEED FOR CAREFUL CASE PLANNING: £72,320 REDUCED TO £24,604
In Rezek-Clarke -v- Moorfields Eye Hospital NHS Foundation Trust [2017] EWHC B5 (Costs) Master Simons upheld a decision to assess costs, claimed at £72,320.85 to £24,604.40. The judgment emphasises the need for careful case planning, and consideration of proportionality, in…
BABIES, BUNDLES, HUMAN RIGHTS, PROPORTIONALITY, CONDUCT AND COSTS:ALL IN ONE JUDGMENT
The judgment of Mr Justice Cobb in AZ -v- Kirklees Council [2017] EWFC 11 contains much of interest to the legal profession generally. It shows the danger of failing to comply with court directions; make or respond to appropriate offers…
NEW RULES COMING INTO FORCE: COSTS BUDGETING AND QADER RESULT CODIFIED
The Civil Procedure (Amendment) Rules 2017 were made on the 3rd February. Most of these come into force on the 6th April 2017. The new rules are available here COSTS BUDGETING The amendments set out below may be perplexing. However…
APPLICATION FOR INDEMNITY COSTS REFUSED: THE JUDGE LOOKS AT THE COSTS BUDGET OF THE LOSING PARTY
We have looked many times at cases where judges have considered granting indemnity costs. This issue was considered by Mr Justice Coulson in MacInnes -v- Gross [2017]EWHC 127 (QB). One interesting aspect is that the judge looked at the losing…
FIXED COSTS APPLY TO APPLICATIONS FOR PRE-ACTION DISCLOSURE: COURT OF APPEAL DECISION TODAY
The Court of Appeal judgment today in Sharp -v- Leeds City Council [2017] EWCA Civ 33 deals with an important point about fixed costs and applications for pre-action disclosure. KEY POINTS An application for pre-action disclosure made by a claimant…
DISMAL CORRESPONDENCE, COSTS AND CONDUCT: THE ADMINISTRATIVE COURT GIVES A WARNING
It is a rare to have a specific judgment from the Administrative Court on the question of costs. In Taylor -v- Honiton Town Council [2017] EWHC 101 (Admin) Mr Justice Edis considered issues relating to costs. “I consider that, generally,…
EVIDENCE, PROPORTIONALITY AND PREMIUMS II: NO SAVING OF ENERGY HERE
We have already looked at the judgment of Master Haworth in Savings Advice Limited -v- EDF Energy Customers Ltd [2017] EWHC B1 (Costs) in relation to the admissibility of evidence. Here we look at the judgment in relation to calculation of…
DISCLOSING DETAILS OF COSTS INFORMATION PROVIDED FOR MEDIATION : DISCLOSURE ALLOWED: HIGH COURT DECISION
In Savings Advice Limited -v- EDF Energy Customers Ltd [2017] EWHC B1 (Costs) Master Haworth had to consider the issue of admissibility of evidence relating to a mediation. KEY POINTS Information provided about costs in the run up of a mediation…
PROPORTIONALITY AND ADDITIONAL LIABILITIES: A SCCO DECISION THAT DIFFERS FROM BNM
I am grateful Alan Mendham of Gadsby Wicks to for sending me a copy of the decision of Master Brown in Murrells -v- Cambridge University NHS Foundation Trust (SCCO 17th January 2017) a case that re-visits the issue of proportionality and…
ISSUE BASED COSTS ORDERS: ITS NOT MONEY IN THE BANK
The judgment of Sir Anthony Edwards-Stuart in Lloyds Bank -v- McBains Cooper [2017] EWHC 30 (TCC) considers the question of issue based costs orders. What is interesting here is: Neither party appears to have made a valid Part 36 offer….
FIXED RECOVERABLE COSTS SEMINAR WITH LORD JUSTICE JACKSON: LEEDS, 6th FEBRUARY 2017
There are a limited number of places available for solicitors at the : Fixed Recoverable Costs Seminar with Lord Justice Jackson – Monday 6 February 2017 – 1.30pm to 5pm at DAC Beachcroft St Paul’s House. DETAILS Fixed Recoverable Costs…
INDEMNITY COSTS ORDER AGAINST DEFENDANT UPHELD BY COURT OF APPEAL: OFFERS AND CONDUCT: MANNA II
The second post on the Court of Appeal decision in Manna -v- Central Manchester Hospitals NHS Trust [2017] EWCA Civ 12 relates to the Court’s upholding of the trial judge’s award of indemnity costs. “A judge should in my view be…
COSTS, INDEMNITY COSTS AND THE EXPENSIVE CONSEQUENCES OF A SIEGE BASED MENTALITY
It is surprising how often cases that have been looked at because of issues in relation to the evidence at trial are reported again on the issue of costs. The Ocensa Pipeline Group Litigation case is such an action. I…
COSTS AND CONDUCT: A PERCENTAGE REDUCTION FOR A SUCCESSFUL CLAIMANT
In Harlequin Property (SVG) Limited -v- Wilkins Kennedy [2016] EWHC 3233 (TCC) Mr Justice Coulson reduced the claimant’s costs by 40% to reflect the lack of success on many of the key issues in the case. On the three main…
COSTS AT THE END OF A CASE: INDEMNITY COSTS, PAYMENTS ON ACCOUNT AND GOING BEYOND THE COSTS BUDGET
In Barkhuysen -v- Hamilton [2016] EWHC 3371 (QB) Mr Justice Warby considered matters relating to costs after a trial. The defendant’s conduct led to an order for indemnity costs being made. The judge also identified those areas in which the claimant…
COURT FEES AND STEALTH TAXES: REPAYMENT OF TRIAL FEES TO END NEXT YEAR
Thanks to Kerry Underwood for pointing out the provisions of The Civil Proceedings Fees (Amendment) Order 2016 which comes into force on the 6th March 2017. There is a hidden “tax” in that the repayment of court fees has ended….
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