COST BITES 185: VARYING THE AMOUNT PAYABLE AFTER A CLAIMANT DISCONTINUES: THE COURT CAN TAKE INTO ACCOUNT PRE-DISCONTINUANCE CONDUCT
In her very last judgment in the case of Elphicke v Times Media Ltd [2024] EWHC 2595 (KB) Master McCloud considered the question of whether it is possible for a court to take into account pre-discontinuance conduct when considering whether…
FIXED RECOVERABLE COSTS CONFERENCE: 8th NOVEMBER 2024 – READ ALL ABOUT IT…
On the 8th November I am speaking at the Fixed Recoverable Costs Conference in London. The conference covers numerous aspects of fixed recoverable costs. (I am speaking on fixed costs, fatal cases and the costs of attending an inquest). Booking…
SENIOR MASTER COOK’S GUIDANCE ON COST MANAGEMENT HEARINGS: A PIECE BY PIECE GUIDE (1): THE GENERAL APPROACH AND HOURLY RATES
Senior Master Cook published the Kings Bench Masters Cost Management Hearings Guidance Note on the 26th September. I am going through this on a topic by topic guide. Here we look at the general approach to budgeting and hourly rates. …
COST BITES 184: COURT OF APPEAL UPHOLDS DECISION THAT COUNSEL ON DIRECT ACCESS NOT ENTITLED TO RECOVER FEES FROM THEIR (FORMER) CLIENT BECAUSE THE CONTRACTUAL TERMS WERE UNFAIR
In Glaser & Anor v Atay [2024] EWCA Civ 1111 the Court of Appeal upheld the decision that a contractual term that meant Leading counsel and junior counsel would be paid even if a trial was adjourned was unfair. Being…
COST BITES 183: A SERIES OF BILLS WERE NOT STATUTE BILLS: “CHAMBERLAIN” NOT ENGAGED: THE JUDGE WOULD HAVE FOUND “SPECIAL REASONS” TO ALLOW ASSESSMENT IN ANY EVENT
In Guest Supplies Intl Ltd v Spector Constant & Williams Limited [2024] EWHC 2450 (SCCO) Costs Judge Nagalingam decided that a series of bills sent by a solicitor were not statutory bills, neither were they “Chamberlain bills”. In any event…
APPLICATION FOR WASTED COSTS AGAINST CLAIMANT’S SOLICITORS DISMISSED: NO DUTY TO “DUMP” A CLIENT WHEN FUNDAMENTAL DISHONESTY IS ALLEGED
In Williams-Henry v Associated British Ports & Anor (Re Wasted Costs Order) [2024] EWHC 2415 (KB) Mr Justice Ritchie dismissed an application for wasted costs against the claimant’s solicitors. This dismissal took place at “stage one” – with the allegations…
CLAIMANT FAILS IN APPLICATION TO HAVE APPEAL JUDGMENT SET ASIDE: THE SOLICITOR SHOULD HAVE NOTICED THE APPEAL HAD BEEN LISTED: LATE SERVICE MEANS COSTS BUDGET WAS ASSESSED AT NIL
The judgment of Mrs Justice Hill in Deng v Zhang & Anor [2024] EWHC 2392 (KB) shows a case with a whole history of errors and mishaps. The claimant failed to file a cost budget in time but obtained relief…
PART 36: FIXED COSTS AND THE TRANSITIONAL PROVISIONS: DELAY IN ISSUING COSTS PROCEEDINGS MEANT THAT CLAIMANT’S COSTS WERE ASSESSED AT NIL
In Bi -v- Tesco Underwriting Limited HHJ Sephton KC found that the claimant’s delay in issuing costs proceedings meant that the costs were subject to the fixed costs provisions and should be assessed at nil. I am grateful to barrister…
COST BITES 182: ANOTHER CASE OF A CLAIMANT PAYING THE COSTS OF A BUDGETING HEARING BECAUSE OF AN UNREALISTIC APPROACH
In Jenkins v Thurrock Council [2024] EWHC 2248 (KB) Master Thornett revisited the principles considered in Worcester v Hopley [2024] EWHC 2181 (KB) It was held that the claimant’s unrealistic figures in a costs budget should lead to the claimant paying…
“IN CONTRACT YOU BARGAIN FOR A RESULT”: JUDGE UPHOLDS COMPANY’S CLAIM FOR 20% OF COMPENSATION RECEIVED
I am grateful to Martin Hirst for sending me a copy of the judgment of HHJ Holmes in NC Investigating Services Ltd -v- Crossley (1st March 2024), a copy of which is available here OT APPROVED, MHIRST, H1QZ65P0, NCINVESTIGATION, CROSSLEY,…
COST BITES 181: WHAT PERCENTAGE SHOULD BE PAID ON ACCOUNT OF COSTS?
In Matrix Receivables Ltd v Musst Holdings Ltd (Re Costs) [2024] EWHC 2245 (Ch) Mr Justice Freedman considered the appropriate approach to an interim payment on costs. He rejected the argument that the appropriate percentage was 70% and found, on…
COST BITES 180: EXCESSIVE BUDGET LEADS TO PARTY BEING ORDERED TO PAY THE COSTS OF A BUDGETING HEARING
In Nicholas Worcester v Dr Philip Hopley [2024] EWHC 2181 (KB) Master Thornett awarded costs against a party who, the Master felt, had over-inflated their costs budget. The case stands as a warning that a party putting forward a budget which is…
COST BITES 179: CHALLENGING A PROVISIONAL ASSESSMENT: CLAIMANT’S FAILURE TO COMPLY WITH THE RULES LEADS TO CHALLENGE BEING REJECTED
In Christodoulides v Holbech [2024] EWHC 2172 (SCCO) Deputy Costs Judge Roy KC refused a claimant’s application to revisit a provisional assessment. The claimant (the paying party) had not complied with the rules when attempting to challenge the bill and…
COST BITES 178: VALIDITY AND ENFORCEABILITY OF CONTENTIOUS BUSINESS AGREEMENT UPHELD ON APPEAL
In Finnan v Candey Ltd [2024] EWHC 2157 (Ch) HHJ Cadwaller dismissed an appeal against a finding that a solicitor and client had entered into a valid contentious business agreement. The judge held that the finding below, that the appellant…
COST BITES 177: SUCCESSFUL CLAIMANT RECOVERS ONLY 20% OF ITS COSTS (STILL GETS AN INTERIM PAYMENT OF £2 MILLION)
In Tata Consultancy Services Ltd v Disclosure and Barring Service [2024] EWHC 2025 (TCC) Mr Justice Constable found that a “successful” claimant who had recovered nearly £3.7 million in damages should only recover 20% of its costs. Both parties had…
WITNESS STATEMENTS: PD57AC “MORE HONOURED IN THE BREACH THAN THE OBSERVANCE”: AND THIS HAS CONSEQUENCES
In KSY Juice Blends UK Ltd v Citrosuco GmbH [2024] EWHC 2098 (Comm) HHJ Pearce (sitting as a Judge of the High Court) observed that the requirements for drafting witness statements in PD57AC were “more honoured in the breach than…
COST BITES 176: A WARNING TO ALL WOULD BE INTERVENORS IN CIVIL PROCEEDINGS: IT COULD BE COSTLY (£110,000 IN THIS CASE)
In Betta Oceanway Company v SC Tomini Trading SR (Re Costs) [2024] EWHC 2068 (Comm) Mr Stephen Hofmeyr KC (sitting as a Deputy Judge of the High Court) held that a person who unsuccessfully sought to intervene in civil proceedings…
COST BUDGETS, VARIATIONS AND “SIGNIFICANT DEVELOPMENTS”: JUDGE REFUSES TO REVISE THE BUDGET AFTER TRIAL
In Rahman v Hassan & Ors (Re Consequential Matters) [2024] EWHC 2038 (Ch) HHJ Paul Matthews (sitting as a High Court Judge) refused the claimant’s application that the budget be revised after the trial. The judge held that the matters relied…
PART 36: THE CONSEQUENCES APPLY TO A CLAIMANT’S OFFER EVEN WHEN THERE WAS NO CLAIM FOR A MONETARY AWARD
In Rahman v Hassan & Ors (Re Consequential Matters) [2024] EWHC 2038 (Ch) HHJ Paul Matthews (sitting as a High Court Judge) held that Part 36 applies even when the claim was not, directly, for a monetary award. There was…
COST BITES 175: SOLICITOR’S BILLS WERE NOT INTERIM STATUTE BILLS AND COULD BE ASSESSED: COURT OF APPEAL DECISION TODAY
In the judgment today in Signature Litigation LLP v Ivanishvili [2024] EWCA Civ 901 the Court of Appeal upheld an earlier decision of Costs Judge Leonard that a series of bills rendered by the appellant solicitors were not interim statute…
A PART 36 OFFER MADE PRE-TRIAL WAS NOT OPEN FOR ACCEPTANCE WHILST QUANTUM WAS BEING ASSESSED: WHEN IS A SPLIT TRIAL NOT A SPLIT TRIAL?
In Wells v Hornshaw & Ors [2024] EWHC 2019 (Ch) Mr Justice Adam Johnson rejected a petitioner’s argument that a Part 36 offer remained open for acceptance. There had been a trial after the Part 36 offer had been made. …
THE CLAIMANT’S CASE WAS NOT STAYED BECAUSE IT COULD NOT PAY INTERLOCUTORY COSTS ORDERS: WON’T PAY IS VERY DIFFERENT TO CAN’T PAY
In J Robbins Capital Partners Ltd v Zamsort Ltd & Ors [2024] EWHC 1990 (Comm) Paul Stanley KC (sitting as a Deputy High Court Judge) refused the defendants’ application that the action be stayed pending the claimant’s payment of interlocutory…
COST BITES 174: A TRUSTEE IN BANKRUPTCY HAS NO SPECIAL STATUS WHEN IT COMES TO COSTS: “HE HAS NOT SUGGESTED THAT, HAD HE WON, HE WOULD NOBLY DECLINE TO ASK FOR HIS COSTS”
We are returning to the judgment of HHJ Paul Matthews (sitting as a High Court Judge) in Broom v Aguilar [2024] EWHC 1961 (Ch). The judge rejected an argument that a different order for costs should be made because the respondent/clamant…
COSTS AFTER A CLAIMANT FAILS ON CLAIM FORM POINTS: SUCCESSFUL DEFENDANTS GET (MOST) OF THEIR COSTS
In Wragg & Ors v Opel Automobile GmbH & Ors [2024] EWHC 1909 (KB) Mr Justice Constable considered issues of costs after the claimants had failed on appeal on late service/extensions of time claim form issues. “Doing justice between the…
COST BITES 173: VARYING A COSTS BUDGET “AFTER THE EVENT”: IF THE APPLICATION WAS NOT “PROMPT” THE BUDGET WILL NOT BE VARIED
We are looking again at the decision in Khokan v Nirjhor (Re Costs) [2024] EWHC 1873 (KB), this time on the issue of costs budgeting. The judge considered the defendant’s budget in unusual circumstances. The claimant’s case had been struck…
COST BITES 172: CLAIMANT WHOSE CASE WAS STRUCK OUT HAD TO PAY THE DEFENDANT’S COSTS
In Khokan v Nirjhor (Re Costs) [2024] EWHC 1873 (KB) Mrs Justice Hill rejected an argument that a claimant, whose case had been struck out due to non compliance with a peremptory order, should then not be liable to pay…
COST BITES 171: DEFENDANT WHO RECEIVED LEGAL AID TO DEFEND CIVIL COMMITTAL PROCEEDINGS CAN ONLY RECOVER COSTS AT LEGAL AID RATES
The judgment of Costs Judge Whalan in MBR Acres Ltd & Ors v McGivern [2024] EWHC 1869 (SCCO) highlights an issue that has been on this blog before. A party who obtains legal aid to defendant civil committal proceedings cannot…
COURT MADE PEREMPTORY ORDER THAT CLAIMANT PAY COSTS: ARTICLE 6 RIGHTS NOT INFRINGED
In Khokan v Nirjhor [2024] EWHC 1872 (KB) Mrs Justice Hill granted the defendant’s application for a peremptory order following the claimant’s failure to pay costs ordered against him at an interlocutory hearing. The judge refused the claimant’s application for…
“UNNECESSARILY ARGUMENTATIVE OR WASTEFUL CORRESPONDENCE” NOT COUNTENANCED IN COSTS BUDGETING: “IT TAKES TWO TO TANGO”
The post earlier this morning on “intemperate” comments in court documents and correspondence reminded me that I meant to highlight a particular aspect of the judgment in Pan NOx Emissions Litigations [2024] EWHC 1728 (KB). The judgment highlights that unnecessarily argumentative…
COST BITES 170: IF YOU MAKE AN APPLICATION, HAVE IT HEARD BUT WITHDRAW IT PRIOR TO JUDGMENT THEN YOU ARE PAYING ALL THE COSTS (ALTHOUGH NOT NECESSARILY ON THE INDEMNITY BASIS)
In Hill v Touchlight Genetics Ltd & Ors [2024] EWHC 1801 Mrs Justice Joanna Smith considered issues relating to costs where the claimant abandoned her application to amend after the hearing, but prior to judgment. The judge held that the…
“CIVIL LITIGATION IN THE MODERN ERA REQUIRES THE PARTIES TO BEHAVE REASONABLY”, PARTY PENALISED IN COSTS FOR NOT AGREEING TO AN EXTENSION OF TIME
In Invenia Technical Computing Corporation & Anor v Hudson [2024] EWHC 1481 (KB) Mr Justice Knowles held that a party that had refused a reasonable request for an extension of time should pay the costs of that application. “……
COST BITES 169: AN EXAMPLE OF A SUMMARY ASSESSMENT OF COSTS IN ACTION
There is an interesting example of a summary assessment of costs in action in the judgment of Mr Andrew Twigger KC (sitting as a Deputy Judge of the High Court) in Wootton & Anor v Wootton & Ors (Re Costs)…
COST (MEGA) BITES 168: AN EXHAUSTING READ (V): BUDGETS THAT ARE DESCRIBED AS “ABSURDLY HIGH”, “WHOLLY EXCESSIVE” AND WHICH “STRAINS ALL CREDULITY”
Unsurprisingly we are returning to the judgment in Pan NOx Emissions Litigations [2024] EWHC 1728 (KB). The judges gave some examples of parts of the claimants’ budgets in particular that had been “overbudgeted”. They were not shy IN setting out their…
COST (MEGA) BITES 167: AN EXHAUSTING CASE (IV): “BUT YOURS IS NEARLY AS BIG AS MINE” IS NOT A GOOD ARGUMENT: COSTS BUDGETS COULD NOT BE COMPARED
We are continuing to look at the judgment in relation to the budgets in Pan NOx Emissions Litigations [2024] EWHC 1728 (KB). In this post we are considering the argument that since claimants’ budget was very similar to the defendants’…
COST (MEGA) BITES 166: AN EXAUSTING CASE (iii): “THE CLAIMANTS’ APPROACH TO BUDGETING IS REDOLENT OF FINANCIAL INCONTINENCE”
The general observations made about the budgets in Pan NOx Emissions Litigations [2024] EWHC 1728 (KB) is of importance. The court was particularly scathing of the claimants’ budget. It also rejected the claimants’ contention that the defendants’ budget had been artificially…
COST (MEGA) BITES 165: AN EXHAUSTING CASE (ii): PROPORTIONALITY WHERE THE CLAIMANTS CLAIM THE CASE IS WORTH £6 BILLION: THE PARTIES ARE NOT HANDED A BLANK CHEQUE FOR THE PURPOSE OF RECOVERABLE COSTS
We are continuing with the examination of the judgment of Mr Justice Constable and Senior Costs Judge Saker in Pan NOx Emissions Litigations [2024] EWHC 1728 (KB). This time by looking at the court’s consideration of issues of proportionality when…
COST (MEGA) BITES 164: AN EXHAUSTING CASE:COSTS BUDGETING WHEN THE BUDGETS TOTAL £650 MILLION (1): GENERAL PRINCIPLES
The judgment of Mr Justice Constable sitting with Senior Costs Judge Saker in Pan NOx Emissions Litigations [2024] EWHC 1728 (KB) contains much that is of interest to litigators. The judges budgeted a case where the claimants sought over £342…
COST BITES 163: NO DEDUCTION FROM SUCCESSFUL RESPONDENT’S COSTS: A POINT OR TWO ABOUT “CLIENT’S” SUBMISSIONS
In McAteer v Hat & Mitre & Ors (Re Consequential Matters) [2024] EWHC 1746 (Ch) Sir Anthony Mann (sitting as a High Court Judge) dismissed the unsuccessful appellant’s application that the respondent’s costs be reduced. There were also some important…
IMPORTANT THINGS TO THINK ABOUT WHILE THE SUPREME COURT JUDGMENT IN MENZIES -v- OAKWOOD IS PENDING
The Court of Appeal decision in Menzies v Oakwood Solicitors Ltd [2023] EWCA Civ 844 was appealed to the Supreme Court and was heard last week. The judgment is pending. In the interim period my colleague Matthew Smith suggests that claimant…
COST BITES 162: YOU CAN’T SEND SOMEONE TO PRISON FOR NOT PAYING YOUR COSTS – YOU REALLY CAN’T
In Smith v Kirkegaard [2024] EWCA Civ 698 the Court of Appeal found that it is not possible to imprison someone for contempt if they have failed to pay costs ordered during a court action. The judgment involves a look…
COST BITES 160: SOLICITOR AND OWN CLIENT ASSESSMENTS AND THE IMPORTANCE OF “ESTIMATES” OF COSTS
We are looking for the third time at the judgment in St. James v Wilkin Chapman LLP [2024] EWHC 1716 (KB). One of the issues that the (former) client raised was the absence of any accurate estimate in relation to costs…
THE COSTS JUDGE OVER YOUR SHOULDER (SOLICITOR AND OWN CLIENT COSTS): WEBINAR 15th JULY 2024
The previous post on the judgment in St. James v Wilkin Chapman LLP [2024] EWHC 1716 (KB) highlights the fact that great care is needed in entering into funding agreements with clients when the solicitor proposes to deduct costs from the…
COST BITES 158: SOLICITOR WAS ONLY ENTITLED TO SUCCESS FEE AND NO FURTHER COSTS: HIGH COURT DECISION ON APPEAL
In St. James v Wilkin Chapman LLP [2024] EWHC 1716 (KB) Mr Justice Constable allowed an appeal against a decision that a solicitor was entitled to deduct additional costs from the claimant’s damages. The judge held that the terms of…
CLAIMANT’S PART 36 OFFER ON LIABILITY NOT EFFECTIVE WHEN CAUSATION WAS STILL AT LARGE: NOT AN EFFECTIVE TRY
In Elbanna v Clark (Re Consequential Matters) [2024] EWHC 1471 (KB) Mr Justice Sweeting found that a claimant’s Part 36 offer to accept 75% of liability was too ambiguous to be effective when issues of causation were also to be…
WHEN SHOULD A PART 20 DEFENDANT BE LIABLE TO PAY THE PART 20 CLAIMANT’S COSTS OF DEFENDING THE MAIN ACTION? THE PRINCIPLES CONSIDERED
In Alison Healey (Widow And Executrix of the Estate of Simon Andrew Healey, Deceased) v Mr Daniel McgRath [2024] EWHC 1360 (KB) Dexter Dias KC, sitting as a Deputy High Court Judge, considered the question of whether it was appropriate…
COST BITES 156: COSTS BUDGETING WAS APPROPRIATE IN THE CASE OF A SERIOUSLY INJURED CHILD: IT HELPS THE CLAIMANT AS MUCH AS THE DEFENDANT
I am grateful to PJ Kirby KC for sending me a copy of the judgment of Master Brown in the case of PXT -v- Atere-Roberts [2024] EWHC 1372 (KB), a copy of which is available here Judgment PXT final 6…
COST BITES 155: HOW PARTICULAR SHOULD POINTS OF DISPUTE BE? AINSWORTH PRINCIPLES APPLY TO INTERPARTES ASSESSMENTS
In Wazen v Khan [2024] EWHC 1083 (SCCO) Deputy Costs Judge Roy KC considered the question of how detailed and particularised points of dispute have to be. In particular whether the principles in Ainsworth v Stewarts Law LLP [2020] EWCA Civ…
UPDATE ON PREVIOUS POST: SUCCESSFUL DEFENDANT’S COSTS REDUCED BY 25% BECAUSE THEY REFUSED TO CONSIDER MEDIATION
Following the previous post about the judgment of HHJ Mithani KC in Conway v Conway & Anor (Rev1) [2024] EW Misc 19 (CC) there is an interesting post about the subsequent decision of costs. This is on Linked In by…
COST BITES 154: SOLICITOR’S COSTS AND ESTIMATES: A CASE THAT EVERY PRIVATE CLIENT AND EVERY LITIGATOR SHOULD READ
If ever there was a graphic warning of the way that costs can escalate beyond estimates it can be found in the judgment of Costs Judge Leonard in Griffin v Kleyman & Co Solicitors Ltd *[2024] EWHC 1151 (SCCO). The judge rejected…
TRANSFER FROM PART 8 TO PART 7 REVISITED: IT CAN BE AN EXPENSIVE BUSINESS
There have been a lot of cases recently regarding the question of whether an action was properly issued using the Part 8 procedure. We looked at the case of ISG Retail Ltd v FK Construction Ltd [2024] EWHC 878 (TCC) in…
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