Entries by Toby Moreton

CPR 3.13(3) | Costs Budgeting Ordered In Child PI Claim Valued At £10m+

In PXT v Atere-Roberts [2024] EWHC 1372 (KB), the court considered a child’s claim for a severe traumatic brain injury which she had suffered after being struck by a vehicle being driven by the Defendant. As the claim was brought by a child, it was exempt from automatic costs budgeting under CPR 3.12. However, the Defendant applied for costs budgeting to be directed under CPR 3.13 due to concerns over the Claimant’s rapidly increasing incurred and estimated costs, which had doubled to over £1.1 million in less than a year. The Claimant argued that the case’s complexity and uncertainty over the child’s long-term prognosis made budgeting inappropriate at this stage. Despite these arguments, Master Brown ordered costs budgets, finding that the risk of disproportionate costs outweighed other factors.

Costs/Damages Set Off Allowed Across “Distinct” High Court/County Court Proceedings

In Black, R (On the Application Of) v Secretary of State for Justice [2024] EWHC 1376 (Admin), the High Court granted an application by the Secretary of State for Justice to set off a £150 damages award owed to a prisoner, from a county court claim, against a £2,856 costs order that the prisoner owed from an earlier, unsuccessful judicial review claim. Applying Fearns v Anglo-Dutch Paint & Chemical Co Limited [2010] EWHC 2366 (Ch), Fordham J held that there was sufficient connection between the two claims to make the set-off just, notwithstanding their distinct procedural origins. The decision confirms the wide discretion to allow set-off of cross-court judgments and highlights the potential complexities of prisoner litigation.

Ainsworth Applies To Inter Partes Detailed Assessment, Samsung Does Not

In Wazen v Khan, following settlement of a clinical negligence claim in the sum of £300,000, the defendant challenged the claimant’s costs. The key issue was whether the Ainsworth principles on the specificity required in points of dispute apply to inter partes detailed assessments, and if so, whether the defendant’s points of dispute complied with those requirements. Deputy Costs Judge Roy KC held that the Ainsworth principles do apply to inter partes assessments, although less particularity is required than in solicitor-client cases. The judge found that the defendant’s points disputing time for disclosure and ADR phases lacked the necessary specificity, as they did not identify the specific items being challenged and provided only broad-brush assertions of excess. Consequently, those points were struck out. The judgment also noted that the Court of Appeal’s decision in Samsung Electronics Co Ltd & Ors v LG Display Co Ltd & Anor (Costs) [2022] EWCA Civ 466, requiring a “clear and compelling reason” for exceeding guideline hourly rates, does not apply to detailed assessments.

Claimant Estopped From Asserting QOCS Protection Following Dismissal Of PI Claim

In Thomas v Southwick Car Centre Ltd, the court considered whether a claimant in a personal injury claim had the protection of Qualified One-Way Costs Shifting (QOCS) in respect of adverse costs orders made following the dismissal of her claim. The key issue was whether the claimant had entered into valid pre-commencement funding arrangements (a conditional fee agreement and after-the-event insurance) before the introduction of QOCS on 1 April 2013. The claimant argued that her funding arrangements were invalid or unenforceable, while the defendant contended that they were valid and that the claimant was estopped from asserting QOCS protection, having previously represented to the defendant through correspondence and statements made by her counsel in court that QOCS did not apply to her claim. The court found that the claimant had entered into valid pre-commencement funding arrangements and therefore did not have QOCS protection. The court also held that, even if the claimant did have QOCS protection, she would be estopped from asserting it due to her previous representations that QOCS did not apply, which had caused the defendant to lose the opportunity to seek a finding of fundamental dishonesty that would have disapplied QOCS.

Permission Refused To Appeal A Seven Year Old Final Costs Certificate

In Choudhury v Mukherjee [2024] EWHC 1153 (SCCO), the court dismissed the Defendant’s application for an extension of time to appeal a Final Costs Certificate issued seven years earlier. The court found that the lengthy delay was serious with no good reason and that, in any event, there is no right to appeal a provisional assessment per PME v Scout Association. The Defendant’s grounds of appeal, including allegations that the Final Costs Certificate was obtained unlawfully and that service of the Notice of Commencement and Bill of Costs was invalid, were found to be “between weak and non-existent.”

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Solicitors Not Held To “Inadequate” Costs Estimate

In Griffin v Kleyman & Co Solicitors Ltd [2024] EWHC 1151 (SCCO), Costs Judge Leonard addressed the issue of whether the solicitor’s costs for acting in ancillary relief proceedings should be limited by reference to estimates provided to the client during the retainer. The claimant argued that the defendant’s failure to provide adequate estimates deprived her of the ability to make informed decisions, and that the costs should therefore be limited to the estimates provided. The defendant countered that the estimates were caveated, and the claimant’s conduct led to increased costs. Costs Judge Leonard found that while solicitors failed to update the estimate when it became apparent it woudl be exceeded, the claimant “habitually caused unnecessary costs to be incurred, making it inevitable”. Such conduct made it impossible to identify a reasonable figure to limit the defendant’s recoverable costs. Accordingly, a detailed line-by-line assessment was necessary to determine the reasonable amount payable.

Senior Costs Judge Directs Breakdown Of Premex Fees

In CXR v Dome Holdings Limited the claimant had engaged Premex, a medical reporting agency, to obtain expert medical reports but did not provide a breakdown of the expert’s fees and the agency’s fees when serving the bill. The defendant challenged this, and the court had to decide whether such a breakdown was required under paragraph 5.2 of Practice Direction 47. Senior Costs Judge Gordon-Saker, following the reasoning in Stringer v Copley (2002) and the decision of His Honour Judge Bird (in Hoskin), ruled that the claimant must provide a breakdown of the fee notes to show the separate fees of the expert and the agency.

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s68 Solicitors Act 1974 | Solicitors Ordered To Deliver A “Complete” Bill | Karatysz Applied

In Hensley v Morris Law [2024] EWHC 1101 (SCCO), the High Court considered an application under section 68 of the Solicitors Act 1974 for the delivery of a statute bill of costs following the conclusion of a personal injury claim. The central issue was whether the bill provided by the defendant solicitors, which only addressed the success fee deducted from the claimant’s damages, complied with the requirements of a statute bill. Costs Judge Rowley found in favour of the claimant, holding that the bill did not meet the necessary criteria, as it failed to provide a complete account of the fees, charges, and disbursements incurred. The judge emphasized that clients are entitled to a compliant bill upon request, regardless of the solicitor’s view on the merits of any potential assessment under section 70 of the Solicitors Act 1974. The defendant was ordered to provide a final statute bill, with the claimant being awarded the costs of the application.

Party Penalised For Failure To File A Costs Schedule In Advance Of Hearing

In Scenic International Group Limited (In Provisional Liquidation) v Adenaike and others [2024] EWHC 1178 (Ch), the High Court addressed the consequences of the Claimant’s failure to file a schedule of costs in advance of a hearing, as required by Practice Direction 44 on the basis that “it was felt that it was unlikely that the Claimant would succeed in recovering costs and that it was therefore disproportionate to incur the expense of preparing a schedule of costs.” The Court found this approach to be mistaken and the failure to be serious, particularly given that the Defendants were unrepresented and would have been deprived of the assistance of a CLIPS barrister in scrutinising the schedule of costs. Taking this failure into account, along with the proportionality and reasonableness of the costs charged, the Court assessed the costs on a broad brush basis at £23,235, significantly lower than the £36,000 claimed by the Claimant.

Qualified One Way Costs Shifting Applies To Detailed Assessment Proceedings

In Challis v Bradpiece [2024] EWHC 1124 (SCCO), the court considered whether the qualified one-way costs shifting (QOCS) regime applies to detailed assessment proceedings following the settlement of a personal injury claim. The claimant argued that QOCS applied, precluding enforcement of the defendant’s costs from the detailed assessment, while the defendant contended that QOCS did not apply to such proceedings. The court held that QOCS does apply to detailed assessment proceedings, finding that a purposive interpretation of CPR 44.13(1)(a) aligns with the legislative intent of promoting access to justice and ensuring claimants are not left with a net liability for costs. The decision clarifies the scope of QOCS protection and highlights the importance of considering the context and purpose of the QOCS provisions when interpreting the rules.