Another important reminder of the importance of giving your client the best costs information possible throughout the life of your retainer. In this case the senior costs judge Master Gordon-Saker determined at first instance that notwithstanding the fact that the former client had not placed any reliance on any of the estimates provided to it by the solicitors, and acknowledging that unforeseen work had been undertaken, he was entitled to use the estimate as a yardstick in determining the reasonable costs payable as between solicitor and client. On appeal, Ms Clare Ambrose (Sitting as a Deputy Judge of the High Court) declined to interfere with this decision.
The Court of Appeal has upheld the decisions of District Judge Bellamy (first instance) and Soole J (on appeal) that a 100% success fee in a low value personal injury claim which was fixed without any reference to the actual risk involved amounted to a cost of “an unusual nature or amount” under CPR 46.9(3)(c).
Managing a client’s expectations in litigation can be difficult. Where there is no CFA, the client has the privilege of being able to ignore his/her solicitors’ advice, holding out for whatever result they desire, however unrealistic, or simply having their day in court. However, what can you do about a client who refuses to accept your advice about making a settlement offer when acting under a CFA?
Master Rowley determines that special circumstance exist by reason of a discrepancy between costs estimates provided and the costs actually billed.