20 March 2003

Costs Case Alert

Woodings & Others v British telecommunications PLC - Mayor and City of London County Court - 7th February 2003

A County Court judgment but nonetheless a strong reminder that stonewalling is no longer an option for Defendants even in low value claims and can have serious costs consequences. Claimants actions for personal injury damages setled for less than #1000 were entitled to assessment of their costs on a standard basis due to the high level (and expense) of technical and medical evidence required and where the defendants had failed to cooperate in finding a costs efficient manner in dealing with the expensive problem of proving causation. Also added to our page:

Sarwar v Alam - SCCO 7th February 2003

Damages #2,250 - Costs #255,000. The Defendants were not happy. Master Hunt deliberates and resolves questions on (i) level of insurance premium recoverable for the CFA (#62,000) in respect of Court of Appeal hearing: Whether excessive?: whether the fact that the solicitors paid it breached the indemnity principle or rendered the agreement champertous?: How to deal with a 50% no claims bonus in relation to the premium (ii) level of the claimants success fee under the CFA (iii) Claimants solicitors hourly rates

Also on the question of validity of CFS's:

Gliddon v Lloyd Maunder Ltd- (SCCO-31st January 2003)

Our last "alert" dated 28th February 2003 was mistakenly broadcast in plain text and so we are repeating same here:

Further News from the SCCO:

Ahmed v Powell (SCCO -19th February 2003

Costs Negotiators Grants refused right of audience on detailed assessment as their instructions (standing arrangement with insurers) put them too far removed from the instructions of an "authorised litigator". Further that their remuneration arrangements with insurers was champertous.

We have the full text of the judgment courtesy of the Claimants Solicitors Messsrs Amelans and provided by Messrs Farnhams of Burnley and Kenilworth

A very full summary of the case can also be found on Lawzone

The Claims Direct Test Cases - Court of Appeal judgment

P&O Nedlloyd BV v Utaniko Ltd (EWCA-19th February 2003)

A Part 36 offer to settle proceedings did not extend to a subsequent appeal. Costs on appeal awarded on a standard basis and not entitled to costs on an indemnity basis in the absence of a further Part 36 offer specifically relating to the appeal