LEGAL COSTS BLOG

Welcome to our legal costs blog. Here you will find all the latest developments in the field of legal costs with summaries of and key takeaways from all the important cases. We hope you find it interesting and informative.

CPR 46.9(3): Informed Consent In Solicitors Act Detailed Assessments

Master Victoria McCloud (sitting as a Deputy Costs Judge in the SCCO) determined preliminary issues in the course of a ...

Court of Appeal gets tough on exceptions to fixed costs: Counsel’s fees and CPR 45.29I(2)(h)

In this landmark decision the Court of Appeal took a trawl through the relevant provisions of the fixed costs regime ...

RASHID V OIL COMPANIES INTERNATIONAL MARINE FORUM [2019] EWHC 2600 (QB)

Judge declines to find exaggeration upon costs determination

In a short judgment following trial at which the claimant was awarded damages of £126,841 against a claim for £1.5 ...

GLOBAL ASSETS ADVISORY SERVICES LTD & ANOR V GRANDLANE DEVELOPMENTS LTD & ORS [2019] EWCA CIV 1764

Can the court order a payment on account under CPR 44.2(8) following acceptance of a Part 36 Offer? Court of Appeal says yes.

In November last year we reported on the case of Finnegan v Frank Spiers [2018] EWHC 3064 (Ch) in which ...

RXK v Hampshire Hospitals NHS Foundation Trust [2019] EWHC 2751 (QB)

Applications for payments on account in long running clinical negligence matters: Don’t just ask.

Master Cook has endorsed the approach taken by HHJ Robinson in I v Hull & East Yorkshire Hospitals NHS Trust ...

Mixed Claims and CPR 44.16(2)(b): Exceptions to Qualified One Way Costs Shifting (QOCS)

The Court of Appeal has considered the correct approach to QOCS in "mixed" cases involving personal injury and non personal ...

Issues based and proportional costs orders: when should they be made?

The Court was tasked with determining costs following a hard fought piece of commercial litigation in which the claimant was ...

Fundamental dishonesty found on appeal by reason of material non disclosure

On a cross appeal arising out of this failed RTA claim Mr Justice Julian Knowles overturned the trial judge's finding ...

Counsel’s fee recoverable as a disbursement under the provisions of Section IIIA in CPR 45

On this appeal from Costs Officer Martin in the Senior Courts Costs Office, the Defendant contended that the Claimant had ...

MR v Commissioner of Police for the Metropolis [2019] EWHC 1970

High Court upholds a Claimant’s Part 36 Offer for nil damages in an action against the police

Allowing an appeal from a decision of HHJ Baucher in the Central London County Court Mrs Justice McGowan found than ...

Derrick Yirenki v Ministry of Defence [2019] EWHC 1955 (QB)

Part 36 And Interim Payments On Account of Costs

Following the decision of Birss J in J P Finnegan v Spiers (t/a Frank Spiers Licensed Conveyancers) [2018] EWHC 3064 ...

Without Prejudice Offer: Admission Denied

Following our recent report on the case of Hossaini v EDS Recruitment Ltd in which the Employment Tribunal had wrongly ...

BLYTH & ANOR V NELSONS SOLICITORS LTD [2019] EWHC 2063 (QB)

Oral Contracts And An Appellate Court’s Approach To Findings Of Fact

The appellants in this case are former clients of the respondent firm of solicitors. They alleged that in the course ...

FULLICK & ORS v THE COMMISSIONER OF POLICE FOR THE METROPOLIS [2019] EWHC 1941 (QB)

Recoverability Of Inquest Costs And Proportionality

This was the first appeal in which the recoverability of inquest costs in civil claims has fallen to be considered ...

CPR 52.18: Applications To Set Aside Permission Or To Impose Conditions Refused

We reported recently on HHJ Klein's dismissal of the appeal in this Solicitors Act dispute between Stewarts Law ("the Respondent") ...

TIMOKHINA v TIMOKHIN [2019] EWCA CIV 1284

Silence And Indemnity Costs In Family Proceedings

This was an appeal by the mother in Children Act proceedings against an order that she do pay £109,394 in ...

West and Demouilpied: ATE Premiums, Reasonableness And Proportionality

The long awaited and much anticipated judgment in these appeals has been handed down. The appeals raised a number of ...

Admissibility (or not) of without prejudice offers on costs

The Employment Tribunal was wrong to consider 'without prejudice' correspondence in its determination of costs following dismissal of a discrimination ...

Fouladi v Darout Ltd & Ors [2019] EWHC 1674 (Ch)

Bullock order upheld on appeal

Mr Justice Henry Carr dismissed an appeal against the making of a Bullock order against three of four defendants to ...

Payments on account in long running clinical negligence cases

Court of Appeal defends interim costs payments in long running clinical negligence matters

We previously reported on the decision of HHJ Robinson on appeal in the County Court at Northampton where he overturned ...

STATI & ORS v THE REPUBLIC OF KAZAKHSTAN

Discontinuance, indemnity costs and payments on account

This was a decision of Jacobs J as to the entitlement of the defendant following discontinuance to an award of ...

JLE v Warrington & Halton Hospitals NHS Trust Foundation Trust [2019] EWHC 1582 (QB)

High Court restores Claimant‘s ’additional amount’ under CPR 36.17(4)

This was an appeal against the decision of Master McCloud not to award the claimant a 10% ‘additional amount’ under ...

HORNE v PRESCOT (NO.1) LTD [2019] EWHC 1322 (QB)

Interest exclusive Part 36 Offers in detailed assessment proceedings

Disagreeing with Judge Robert Owen QC in Potter v Sally Montague (Nottingham CC), HHJ Nicol found that a Part 36 ...

MXX V UNITED LINCOLNSHIRE NHS TRUST [2018] EWHC B23

Costs budgeting and hourly rates: another case of miscertification

This was a decision regarding alleged mis-certification of a costs budget. The case bore similarities to the facts in Tucker ...

Knight & Anor v Knight & Ors (Costs) [2019] EWHC 1545 (Ch)

A costs-inclusive “Part 36 Offer” is NOT a Part 36 Offer

This was another in a line of cases which confirms that a Part 36 Offer cannot contain any provision as ...

Seekings & Ors v Moores & Ors [2019] EWHC 1476 (Comm)

Defendant fails to demonstrate significant developments under PD3E s7.6 to secure budget increase

The was an application by the defendant in a business dispute to upwardly revise his costs budget under PD3E s7.6 ...

HAMMOND V SIG PLC & SUBSIDIARY COMPANIE [2019] EWHC B7 (COSTS)

Fixed costs under Section III of CPR 45: is there any escape?

This was the latest in a series of unsuccessful attempts to escape fixed costs as governed by Section IIIA of ...

XDE v North Middlesex University Hospital Trust [2019] EWHC 1482 (QB)

Switch to Pre LASPO CFA following discharge of funding certificate deemed unreasonable

Applying the principles laid down in Surrey v Barnet And Chase Farm Hospitals NHS Trust [2018] EWCA Civ 451 Mr ...

East Sussex Fire And Rescue Service v Austin [2019] EWHC 1455 (QB)

Proportionality: money isn’t everything

In April 2013 the "old" proportionality test in the then CPR 44.4(2) was replaced by the "new" proportionality test in ...

AINSWORTH v STEWARTS LAW [2019] EWCA Civ 897

Points of dispute in solicitor and client assessments: it’s in the detail

This was an appeal from a decision of Master Gordon-Saker made in the course of detailed assessment proceedings brought under ...

Bates & Ors v Post Office Ltd [2019] EWHC 1373 (QB)

Group litigation: a determination of costs related to common issues

This was a costs decision following determination of 23 common issues between the parties in group litigation between several hundred ...

Proportionality: a view from the High Court

It's been six years since the introduction of the "new" proportionality rule in CPR 44.3(5). In that time there have ...

10% ‘additional amount’ denied following successful Part 36 Offer on hourly rates

This was a decision of Deputy Master Friston (author of Friston on Costs) in the Senior Courts Costs Office. Having ...

HOWARD KENNEDY LLP v SPARTAFIELD LIMITED [2019] EWHC 1218 (Ch)

The relevance of costs estimates where no reliance is shown

Another important reminder of the importance of giving your client the best costs information possible throughout the life of your ...

Mussell & Anor v Patience & Anor [2019] EWHC 1231 (Ch)

A short judgment looking at trust and estate costs principles

Following proceedings for an account by the claimants as executors of what they had done with the deceased's estate HJJ ...

INVISTA v BOTES AND OTHERS [2019] EWHC 1086 (Ch)

CPR 36.17(4) and the sometimes ‘unjust’ consequences of Part 36

In this rare costs decision following a breach of confidence claim from their ex-employers, a multinational corporation, the defendants successfully ...

CALONNE CONSTRUCTION LTD v DAWNUS SOUTHERN LTD [2019] EWCA CIV 754

Court of Appeal upholds validity of Part 36 Offer

The Court of Appeal has dismissed a challenge to the validity of a Part 36 Offer on grounds that i) ...

Ferri v Gill [2019] EWHC 952 (QB) (17 April 2019)

Master wrong to set a “low bar” to escaping fixed costs

A Master (sitting as deputy costs judge) was wrong to set a "low bar" when determining whether a case had ...

BARTS HEALTH NHS TRUST v HILRIE ROSE SALMON (On appeal, County Court at Central London)

HHJ Dight upholds Master’s proportionality finding

Following his more widely reported decision on CPR 3.18(b) HHJ Dight declined to interfere with the Master’s ruling on proportionality ...

Khandanpour v Chambers [2019] EWCA Civ 570

Relief from sanctions granted where deadline missed by “a few hours”

Relief from sanctions was granted in a case where the appellant had failed to meet the deadline for payment of ...

100% success fee model in low value personal injury claims shut down by Court of Appeal

The Court of Appeal has upheld the decisions of District Judge Bellamy (first instance) and Soole J (on appeal) that ...

BARTS HEALTH NHS TRUST v HILRIE ROSE SALMON

CPR 3.18(b): Good reason to depart?

HHJ Dight finds on appeal that the fact that the sum claimed on assessment in any given phase of a ...

payments on account in clinical negligence cases

Payments on account in long running clinical negligence cases

The Claimant successfully appealed a decision to refuse a further interim payment on account of costs in a case where ...

You recovered 2% of your claim. Did you win?

So, you've recovered £700,000. But you were claiming £38m. Who really won? Sir Antony Edwards-Stuart found that the claimant's recovery ...

CPR 44.11: Misconduct in detailed assessment proceedings

There have been number of cases recently dealing with alleged misconduct in the course of detailed assessment proceedings and applications ...

Solicitors entitled to enforce costs incurred under a CFA against client who rejected their advice

Managing a client's expectations in litigation can be difficult. Where there is no CFA, the client has the privilege of ...

Claiming costs in one action as damages in another

Head Note CASE NAME INDEMNITY COSTS : STANDARD BASIS 1 This was an application by the Claimant for permission to ...

Allegations of misconduct and the court’s powers under CPR 44.11

Deputy Master Friston determined an application made in the course of a detailed assessment hearing for partial or full disallowance ...

Interim Payments In Solicitors Act Detailed Assessments

Dealing a further blow to the claimant in this ongoing piece of costs litigation between boxing promoter, Frank Warren, and ...

Costs budgeting, hourly rates and appropriate use of partner time

Mr Justice Warby comments on hourly rates and the appropriate use of partner time in the course of setting costs ...

Get Your Order Right!

On appeal against decisions made in the course of a detailed assessment in the Senior Courts Costs Office Mrs Justice ...

Assessing the risk in a liability admitted case

Reducing the Claimant's 65% success fee on appeal to 12.5% Mr Justice Martin Spencer analyses the proper approach to the ...

Master declines to award 10% ‘additional amount’ under CPR 36.17(4) on grounds of proportionality

Master McCloud exercised her discretion and declined to award the claimant a 10% 'additional amount' under CPR 36.17(4) on grounds ...

Increase in costs budget approved following a ‘significant development’ in the litigation

Master Davison approves the majority of a 78% increase in the disclosure phase of the claimant’s costs budget following disclosure ...

No Excuses: Relief from sanctions refused following late filing of a costs budget

In another case involving the late filing of a costs budget the High Court refused the defendant relief from the ...

MR KIERAN VERTANNES -v- UNITED LINCOLNISHIRE HOSPITALS NHS TRUST

Claimant directed to redraw £950k bill of costs in phases in compliance with CPR 47 PD 5.8(8)

Master Nagalingam directs a claimant to redraw his bill of costs of almost £1m in phases to comply with the ...

High Court deals knock out blow to appeal brought on grounds of an alleged invalid assignment of two CFAs

The High Court refused former client, Frank Warren, permission to appeal a decision of Master Leonard (costs judge) that two ...

Slade v Boodia & Boodia overturned in the Court of Appeal

The Court of Appeal disagrees with Slade J and Master James, finding them wrong to have held that in order ...

QB Master wrong to approve specific number of hours in a costs budget subject to hourly rates

Mr Justice Jacobs held that a Master was wrong to approve specific hours in a costs budget, subject to later ...

The potential consequence of a withdrawn Part 36 Offer

Mr Justice Marcus Smith determined costs in a case where a Part 36 Offer made by the defendant which was ...

The correct approach to costs when a properly made bankruptcy order is later rescinded

On appeal, Mr Justice Nugee considers the correct approach to costs when a properly made bankruptcy order is later rescinded ...

An agreement to pay a fixed sum in relation to work already done was not a contentious business agreement

An agreement to pay a fixed sum in relation to work already done was not a Contentious Business Agreement as ...

Claimants who recovered just 2% of their pleaded claim ordered to pay 50% of the Defendants’ costs

The claimants were ordered to pay 50% of the defendants' costs having recovered just €291,087.03 (2%) of a $16.4 million claim, with ...

QOCS protection does not extend to an unsuccessful counterclaimant’s defence in a personal injury claim

In disagreement with HHJ Freedman in Ketchion v McEwan, claim number C87YJ176, 28 June 2018, HHJ Venn has concluded that ...

No power to order a payment on account of costs following acceptance of a Part 36 Offer

The High Court has ruled that there is no jurisdiction to award a payment on account under CPR 44.2(8) in ...

Can a party issue proceedings simply to recover costs?

A claimant was found to have been justified in issuing proceedings in order to recover his pre action costs. The ...

Interim sum on account of costs ordered as a pre-condition to continuing proceedings

In this appeal decision the Court of Appeal upheld the judge's decision to order an unrepresented claimant to pay £10,000 on ...

The consequences of failing to give reasonable notice of an intention to terminate your retainer

Mr Justice Walker overturned a decision of Master Simons, finding on appeal that the respondent firm of solicitors had not ...

The duty of candour and an award of indemnity costs on judicial review

In this short judgment on costs following a successful judicial review of a District Judge's failure to dismiss summonses for ...

Unreasonable conduct and costs in the First-tier Tribunal

There is no self-standing and separate jurisdiction arising under section 24(4) of the Landlord and Tenant Act 1987 to award ...

Indemnity basis costs following discontinuance

Mr Justice Hildyard examines the principles and authorities governing an award of costs on the indemnity basis, specifically in the ...

When is a costs budget not a costs budget?

Mr Justice Walker allowed an appeal in part against the imposition of a sanction under CPR 3.14 which limited the ...

Security for costs ordered on basis of likely indemnity costs award in the event of failure at trial

Teare J determined an application for security for costs awarding the defendants 75% of their incurred and estimated costs on ...

An application of ‘special circumstances’ under s70(10) Solicitors Act 1974

In this appeal against a decision of Master Rowley in the SCCO Mr Justice Morris determined that special circumstances existed ...

File ownership and the powers of the court for delivery up under s68 and/or its inherent jurisdiction

The issue in these appeals was whether the Court, under the inherent jurisdiction over its officers and/or s. 68 Solicitors ...

No restriction to ordering a payment on account after the order for costs has been made

HHJ Paul Matthews confirms that there is nothing in the rules to say that once an order for costs has ...

Increase in value of claim not a significant development under s7.6 PD3E

Picken J refuses permission to appeal an order rejecting an application to revise a costs budget under s7.6 PD3E, finding ...

Master Leonard decides an application for delivery of a bill under s68(2) in a fixed costs RTA case

A client is entitled to delivery of a bill of costs, and has a statutory right to challenge his solicitor's ...

Inaccurate estimates of costs and special circumstances under s70(3) Solicitors Act 1974

Master Rowley determines that special circumstance exist by reason of a discrepancy between costs estimates provided and the costs actually ...

Costs budgeting: significant developments, treatment of incurred costs and interim applications

Chief Master Marsh considers an application to revise a defendants’ costs budget under Para 7.6 of Practice Direction 3E (PD3E) ...

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