Claimed Costs Cut by 99 Percent

A judge has ordered that a firm in Manchester be referred to the SRA after 99% of the costs it had claimed for were disallowed.

Deputy District Judge Harrison, sitting in Chelmsford County Court, said claimed costs of £14,000 should be reduced to just £68 for the firm's work on a personal injury claim. The firm’s former client and paying party had challenged certain elements of the bill prepared by the firm after he entered into a conditional fee agreement for his claim. 

In a draft order DDJ Harrison said the 100% success fee charged by the firm was ‘troubling’ and the hourly rate of £400 per hour for both Grade A and Grade D fee earners was ‘unrecoverable as it was unusual in amount’. Profit costs were reduced by 99% as the firm ‘had failed to perform its retainer appropriately’.

Costs are a significant yet tricky part of litigation. Larger cases involve signficant budgeting exercies and getting the Court to order the highest possible amount takes experience and an understanding of complicated costs rules.

Oliver Kew in our litigation department has all the experience necessary to give you the best chance possible of receiving significant costs order from Court in any claim.

Published on 25/09/2023