CLAIMANT IS SUCCESSFUL ON APPEAL, BUT DEFENDANT’S PART 36 OFFER MEANS THAT CLAIMANT PAYS THE COSTS: A REMINDER THAT PART 36 REMAINS IMPORTANT – EVEN AT THE APPEAL STAGE
I am grateful to my colleague Steven Turner for sending me a copy of the Court of Appeal decision on costs in Majid -v- HSF Logistics Polksa AP.ZO., a copy of which is available here CA Decision on Costs (and…
SOLICITOR AND OWN CLIENT COSTS: KEEPING THE CLIENT INFORMED: AN ASSESSESSMENT WHERE THE AMOUNTS IN QUESTION WERE NOT APPROVED BY THE CLIENT
The judgment of Costs Judge Nagalingam in Underhill v Thackray Williams Solicitors [2024] EWHC 3206 (SCCO) could well serve as an object lesson in the need for a solicitor to keep their client informed of developments in costs and to…
COST BITES 201: COUNCIL NOT GRANTED PERMISSION TO APPEAL ON “ACADEMIC” POINTS WHERE THE REAL ISSUE WAS ABOUT COSTS
In London Borough of Sutton v Betts [2024] EWCA Civ 1492 the Court of Appeal refused the defendant council’s application for permission to appeal. The claimant tenant had found accommodation and, as between the parties, the points on appeal were…
COST BITES 200: THE COURT WOULD NOT DEFER THE PAYMENT OF COSTS FOLLOWING AN INTERIM HEARING
In Brierley v Howe & Anor (Re Costs – 36 Bourne Street Ltd) [2024] EWHC 2983 ICC Judge Barber rejected a petitioner’s argument that payment of costs following an interlocutory hearing should be delayed or deferred. The judgment is a…
COST BITES 199: HIGHER LONDON RATE CAN BE USED FOR A SPECIFIC APPLICATION, EVEN IF LOWER RATES MAY APPLY LATER
The judgment of ICC Judge Barber in Brierley v Howe & Anor (Re Costs – 36 Bourne Street Ltd) [2024] EWHC 2983 (Ch) raises the interesting question as to whether the complexity of an application should lead to the solicitor’s…
DELEGATION IN LITIGATION: A CASE TO POINT – AND A WEBINAR ON THE 9th DECEMBER 2024
It is often the function, if not the duty, of someone who writes about civil procedure to look at a decision and then extract the most uninteresting aspect of the case for wider publication. I am doing this in relation…
CLAIMANT BEATS HIS OWN “NON MONETARY” OFFER: PART 36 CONSEQUENCES FOLLOW: INDEMNITY COSTS BECAUSE OF CONDUCT
In Grierson v Grierson [2024] EWHC 3048 (Ch) Joanne Wicks KC (sitting as a Deputy Judge of the High Court) found that a claimant had made a Part 36 offer which the defendant had failed to beat. The offer was…
COST BITES 198: YET ANOTHER ROUND IN THE MEDICAL REPORT/AGENCY FEE SAGA: CLAIMANT ORDERED TO PROVIDE A BREAKDOWN OF THE BILL
Hot on the heels of publishing the previous post in relation to the judge’s refusal to order a breakdown of the agency fees involved in a medical report I received a copy of a case from Ben Millns of Kennedys. …
COST BITES 197: ANOTHER ROUND IN THE MEDICAL REPORT/AGENCY FEE SAGA: IT WAS NOT PROPORTIONAL TO ORDER A BREAKDOWN OF THE FEE
I am grateful to Brian Dempsey of BD Costs for sending me a copy of the judgment of District Judge Iyer in the case of Craven -v- Henley, a copy of which is available here Craven -v- Henley. It is a decision…
COST BITES 196: COSTS IN A FAMILY CASE: “EVERY POUND THEY SPEND FIGHTING EACH OTHER IS A POUND THAT WILL NOT BE AVAILABLE FOR THEM AND THEIR CHILDREN”
In LI v FT (Maintenance Pending Suit: Costs) [2024] EWFC 342 Deputy District Judge Harrop made some important remarks in relation to the amount spent in bringing, and defending, an application for maintenance spending suit. “I am dismayed by what…
LIMITATION, DEFAULT AND SANCTIONS – THE KEY CASES OF 2024: WEBINAR 27th NOVEMBER 2024: HELPING YOU TO AVOID PROBLEMS IN 2O25 (AND BEYOND…)
This webinar looks at the key cases relating to limitation, default and sanctions that have occurred in 2024. The aim is to look at problem areas to help litigators avoid problems in the future. Booking details are available here. THE…
COST BITES 195: THE IMPORTANCE OF KEEPING TO COSTS BUDGETS: “GOOD REASONS” FOR DEPARTING AND PART 36 ISSUES
In A & V Building Solution Ltd v J & B Hopkins Ltd [2024] EWHC 2914 (TCC) Mr Roger Ter Haar KC considered the circumstances in which a successful party can go outside the scope of budgeted costs. “……
COST BITES 194: CLAIMANT WHO SUCCEEDED ON SOME, BUT NOT ALL, ISSUES AWARDED COSTS ON THE STANDARD BASIS
In FXS v The Mulberry Bush Organisation Ltd [2024] EWHC 2844 (KB) Margaret Obi, sitting as a High Court Judge, considered issues of costs where a claimant had not succeeded in establishing negligence at trial but was successful on other…
COST BITES 193: HOW COSTS OF £300,000 COULD HAVE BEEN AVOIDED: COURT OF APPEAL OBSERVATIONS
The Court of Appeal judgment in Clapham & Ors v Narga [2024] EWCA Civ 1388 contains important observations about the interaction of the law of adverse possession and the Land Registration Act 2002. However, this being a blog about litigation,…
COST BITES 191: COSTS BILL REDUCED TO NIL BECAUSE OF MISCONDUCT ON ASSESSMENT: “THIS IS THE WORSE EXAMPLE OF TAMPERING WITH A FILE OF PAPERS THAT I HAVE EVER ENCOUNTERED”
I am grateful to Simon Gibbs of GWS Costs for sending me a copy of the judgment of Costs Judge James in Kapoor -v- Johal [2024] EWHC 2853 (SCCO). The judge made findings of serious misconduct by the receiving party…
COST BITES 190: INTERIM STATUTE BILLS, DISCOUNTED CFA ARRANGEMENTS AND PARALLEL REALITY- A DIFFICULT MIXTURE
In Blue Manchester Ltd v Howard Kennedy LLP [2024] EWHC 2823 (SCCO) Costs Judge Nagalingham considered the issue of whether interim bills sent out under the terms of a discounted CFA. The judge found that interim bills rendered in these…
COST BITES 189: COSTS OF OVER £1 MILLION FOR ARGUING ABOUT WHETHER THERE SHOULD BE A TRIAL OF A PRELIMINARY ISSUE
There are a number of important observations in the judgment of HHJ Pelling KC, sitting as a High Court Judge, in Viegas & Ors v Cutrale & Ors [2024] EWHC 2778 (Comm). In particular the reminder to commercial litigants that…
COST BITES 188: MAKING A PEREMPTORY ORDER FOLLOWING A FAILURE TO PAY INTERLOCUTORY COSTS: THE NEED FOR THE RESPONDENT TO PROVIDE EVIDENCE
In Ahmad v Ouajjou & Anor [2024] EWHC 2213 (Comm) HHJ Pelling KC found it was appropriate to make a peremptory order following the defendants’ failure to pay interlocutory costs orders. (This decision was considered in Ahmad v Ouajjou & Anor…
WEBINAR ON NON-PARTY COSTS ORDERS: 5th NOVEMBER 2024
My colleagues Steven Turner and Andrew Hogan are presenting a free webinar on the 5th November on Non-Party Costs Orders. Booking details are available here. The webinar considers the law practice and procedure relating to non-party costs orders in the context…
The Supreme Court decision in Oakwood -v- Menzies: Deducting costs from damages:The practical implications for solicitors and clients: Webinar 13th November 2024
In Oakwood Solicitors Ltd (Respondent) v Menzies (Appellant) [2024] UKSC 34 the Supreme Court overturned the Court of Appeal decision that the sending out an account and deducting costs from damages meant a bill had been “paid” for the purpose…
COST BITES 187: SUPREME COURT OVERTURNS COURT OF APPEAL DECISION IN MENZIES -v- OAKWOOD: THE BILL CAN GO FORWARD FOR ASSESSMENT
In the judgment today in Oakwood Solicitors Ltd (Respondent) v Menzies (Appellant) [2024] UKSC 34 the Supreme Court overturned the Court of Appeal decision. The upshot of this is that there will now be an assessment of the solicitor/own client…
DEFENDANTS OBTAIN EXTRA TIME TO COMPLY WITH PEREMPTORY ORDER: CPR 3.(2)(a) CONSIDERED
In Ahmad v Ouajjou & Anor [2024] EWHC 2659 (Comm) Mr Justice Bryan granted the defendant an extension of time to comply with a peremptory order to pay costs. The application was made “ahead of time”. CPR 3.9 did not…
THE REQUIREMENTS FOR BOTH PARTIES IF THE PART 8 PROCEDURE IS TO BE USED IN MATTERS OF CONTRACTUAL CONSTRUCTION: BEST NOT THROW THE KITCHEN SINK INTO THE MIX
In Workman Properties Ltd v Adi Building And Refurbishment Ltd [2024] EWHC 2627 (TCC) HHJ Stephen Davies sent out a clear reminder of the duties on all parties in a Part 8 case where the court was being asked to…
COST BITES 186: “MY CASE WAS SO HOPELESS I SHOULDN’T HAVE TO PAY YOUR COSTS”: NOT A WHOLLY ATTRACTIVE ARGUMENT
In Mainwaring v Bailey [2024] EWHC 2614 (Fam) Mr Justice Henke ordered an unsuccessful appellant to pay the respondent’s costs. He rejected the appellant’s argument that his appeal was so evidently hopeless that the respondent should not have responded. He…
SENIOR MASTER COOK’S GUIDANCE ON COST MANAGEMENT HEARINGS: A PIECE BY PIECE GUIDE (2):DELEGATION
We are continuing with our detailed examination of the Kings Bench Masters Cost Management Hearings Guidance Note. This time we are looking at issues relating to delegation. Costs budgeting and Cost Judges encourage delegation. The problem for many practitioners is that…
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…
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