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1

Parties Can Contract Out Of Fixed Costs | CA Decision

The phrase “subject to detailed assessment” is a technical term, the meaning and effect of which is expressly and extensively set out in the rules. It plainly denotes that the costs are to be assessed by the procedure in Part 47 on the standard basis (unless the agreement or order goes on to provide for the assessment to be on the indemnity basis). The phrase cannot be read as providing for an “assessment” of fixed costs pursuant to the provisions of Part 45 unless the context leads to the conclusion that the wrong terminology has been used (by the parties or by the Court) so that the phrase should be interpreted otherwise than according to its ordinary meaning.

5

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 CPR 45 by reason of exceptional circumstances under CPR 45.29J. The claimant’s solicitors argued that it had been the claimant’s intention from the outset to pursue the claim outside the Portal. They had initially sent the defendant a letter of claim and only later added the claim to the Portal at the defendant’s insistence in order to progress matters, saying that “the Defendant refused to consider the matter unless a Portal submission was made”.

7

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 where he reduced the claimant’s assessed costs from £52,000 to £40,000. The paying party appealed on grounds that the Master did not go far enough. She was unsuccessful.

8

Get Your Order Right!

On appeal against decisions made in the course of a detailed assessment in the Senior Courts Costs Office Mrs Justice Yip found (amongst other things) that the Deputy Master had been wrong to go behind the strict wording of the order for costs in order to give effect to what she believed the maker of the order had intended, rather than to what it actually said.

9

Fixed Costs v The Standard Basis

A Costs Officer conducting a detailed assessment on a standard basis was not precluded from considering whether the claimants’ costs should be limited to those recoverable under stages 1 and 2 of the Pre-Action RTA Protocol where there was a consent order in which the defendant agreed to pay the claimants reasonable costs.