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England and Wales High Court (Senior Courts Costs Office) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Senior Courts Costs Office) Decisions >> Holliday v E C Realisations Ltd [2008] EWHC 90103 (Costs) (31 March 2008) URL: http://www.bailii.org/ew/cases/EWHC/Costs/2008/90103.html Cite as: [2008] EWHC 90103 (Costs) |
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SUPREME COURT COSTS OFFICE
London, EC4A 1DQ |
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B e f o r e :
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CYNTHIA HOLLIDAY (Personal Representative of the estate of MICHAEL JOHN HOLLIDAY deceased) |
Claimant |
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- and - |
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E C REALISATIONS LIMITED |
Defendant |
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Mr Simon J Brown (instructed by Halliwells) for the Defendant
Hearing date: 26th February 2008
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Crown Copyright ©
Master Gordon-Saker :
i) the hourly rates allowed to the Claimant's solicitors; and
ii) the success fees allowed to the Claimant's solicitors and counsel.
The background
4. … In essence, the practice that I have, both in live and dead claims is to allow the defendant sufficient time taking into account the period that has already passed for investigation before the claim was issued, to investigate the three basic areas in which they may be able to raise a defence on liability that is: (1) employment; (2) significant exposure increasing the risk and (3) causation, and then to order of my own initiative that the defendants show cause to me on the statements of case, the witness statements and expert reports and thus everything that would be available at a trial on liability to the judge, why I should allow the court's resources to be used for a liability trial rather than enter judgment for a sum to be assessed by the court and make an immediate order for an interim payment.
5. Experience has shown during the running of the fast track, that there are very few cases in which liability should be in issue, and once it is out of the way there is a 99% chance that the claim will be settled in respect of quantum. Something like 96% of claims do not need a liability trial.
Hourly rates
1 May 2001 – 30 April 2003 |
1 May 2003 – 30 April 2004 |
1 May 2004 – 30 April 2005 |
1 May 2005 - | |
Partner | £220 (£165) | £230 (£165) | £240 (£165) | £250 (£173) |
Senior Paralegal | £175 (£120) | £180 (£120) | £185 (£126) | |
Paralegal | £115 (£90) | £120 (£90) | £125 (£95) | £135 (£95) |
As I understand it, the composite hourly rates allowed by Mr Lambert were:
i) Partner £187
ii) Senior Paralegal £159
iii) Paralegal £108.
1 January 2001 | 1 June 2002 | 1 June 2004 | 1 June 2007 | |
Grade A | £125-£150 | £155 | £170 | £183 |
Grade B | £125-£150 | £130 | £140 | £161 |
Grade C | £112 | £115 | £120 | £133 |
Grade D | £80 | £85 | £85 | £101 |
The solicitors' success fee
"was Fairchild issue, now resolved".
"No, other exposure v light & no action intended against this employer (Fairchild point taken by defs in any event)".
the only significant risk related to the possibility of the claimant accepting her solicitor's advice and then not beating a payment in. This is just one of the rare risks which justified a success fee set as high as 20% in the simplest of claims.
"The claim falls to be co-ordinated by Norwich Union, as they were the last insurers from 1.7.80 to 30.11.83."
It is of great concern that we have not yet heard from Norwich Union concerning the situation.
It may be that your opponent makes a Part 36 offer or payment which you reject and, on our advice, your claim for damages goes ahead to trial where you recover damages that are less than that offer or payment. If so, we will not charge you our basic charges for the work done after the 21 day period following receipt of notice of the offer or payment.
32. Mr Friston [counsel for the defendant] argues that effectively liability had been conceded. He argues that in any event the reports of Dr Muers strongly supported liability. Having read the reports, I accept that, but a possible new issue had been introduced by the post mortem results. A report on mineral content by Dr M K Bennett dated 4 July 2000 recorded a low fibre count and wrote, "this … does not indicate occupation exposure to asbestos". When Dr Muers came to express a view about that in his report dated 7 November 2000, he doubted that conclusion.
33. I accept that at the date of the CFA [31st August 2000], it was possible to be very optimistic that some liability would be established, but it was not certain. The risk was not negligible. I do not accept that at the date of the CFA that Irwin Mitchell could simply ignore any argument about the fibre count.
34. However, there is no dispute that the other issues identified by the learned Costs Judge remained. Mr Friston's argument is that all these issues, quantum issues in the sense that he used that expression, must be given much less weight than true liability issues. He submits that quantum issues only lead to the case being lost if a series of events occur. There must be a Part 36 payment into court, followed by the non-acceptance of that, the case going to trial, the case being won and the claimant failing to beat the payment into court. He submits that it is unusual for all those events to occur and the chance of losing is thus at a very low level. He further submits that the claimant's legal advisers should, if they do their job, be able to advise on the quantum issues and have only themselves to blame if their advice is wrong.
35. Although in my view Mr Friston is correct in analysing the events that must happen if a claimant is to fail to beat the payment into court, the crucial event is the last. I do not accept that advising on quantum issues is straightforward in such a case. Particularly when they are several factors, as here, which may ultimately affect the final award, advising is very far from straightforward. That is illustrated by what happened. The payment in, much later, was £165,000. Irwin Mitchell advised non-acceptance. The damages agreed were £180,000. Such advice requires good judgment.
36. While I accept that liability issues and quantum issues can usefully be considered separately in such a case as this, ultimately a single success fee must be arrived at on an assessment of the prospect of "winning".
116. There was a serious risk that the Claimant might not win (in the sense defined in the CFA) because she might be unable to establish that Mr Rugg had been employed by any of the Defendants or that he had been employed by any of them for a sufficiently substantial period of time. Failure to win would result in FFW [the Claimant's solicitors] recovering no costs at all.
117. There was a serious risk that an early Part 36 payment might be made which (if not beaten) would result in FFW recovering no costs at all from the date of the payment. Barker had been decided by Moses J at the relevant time but FFW were not to know what the result of the appeal to the Court of Appeal would be and still do not know what the result of the appeal to the House of Lords will be. If Barker were to have been reversed it could have impacted on the total amount of damages which would be recoverable and hence on the consequences of a Part 36 payment.
118. Similarly if Barker were to have been reversed it would have been almost impossible (on the very limited evidence available) for the Claimant to establish the relevant periods of Mr Rugg's employment and might well have prevented the Claimant from winning his case.
5. Experience has shown during the running of the fast track, that there are very few cases in which liability should be in issue, and once it is out of the way there is a 99% chance that the claim will be settled in respect of quantum. Something like 96% of claims do not need a liability trial.
Counsels' success fees
i) "no corroborative evid at present re exposure"
ii) "no full liability report"
iii) "Defendant's insurance position not finalised".
The uplift in respect of the success fees should not have exceeded 27.5%.
Note 1 (unreported) 9th March 2006 [Back] Note 2 [2003] EWHC 15 (QB) at para 51(iv) [Back] Note 3 unreported; 21st October 2004 [Back] Note 5 [2004] EWCA Civ 1712 [Back] Note 6 [2004] EWHC 1116 (QB) [Back]