Morgan v The Spirit Group Ltd

Morgan v The Spirit Group Ltd

A judge cannot fix a stated amount for costs without conducting a summary or detailed assessment by reference to the detailed breakdown of costs incurred. The order fixing the claimant’s costs at £25,000 was set aside and replaced with an order for detailed assessment as if the case had been allocated to the fast track.

Parties
Appellant/claimant: Katherine Morgan; Respondent/defendant: The Spirit Group Limited
Jurisdiction
England and Wales
Judgment Date
02 February 2011
Procedural Posture
Civil Appeal (costs) / Appeal From County Court to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Assessment of Costs, Summary Assessment, Detailed Assessment, Proportionality of Costs, Discretion in Costs Orders
Civil Procedure Costs Assessment of Costs Summary Assessment Detailed Assessment Proportionality of Costs Discretion in Costs Orders

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Parties

Katherine Morgan

Appellant/claimant

The Spirit Group Limited

Respondent/defendant

Procedural Posture

Civil Appeal (costs) / Appeal From County Court to Court of Appeal

Legal Issues

  1. 1 Whether a judge can fix a stated amount for costs without summary or detailed assessment under CPR r 44.3(6)(b)
  2. 2 Whether the trial judge erred in fixing the claimant’s costs at £25,000 without assessment
  3. 3 Proper approach to costs in a straightforward personal injury claim

Ratio Decidendi

A judge cannot fix a stated amount for costs without conducting a summary or detailed assessment by reference to the detailed breakdown of costs incurred. The order fixing the claimant’s costs at £25,000 was set aside and replaced with an order for detailed assessment as if the case had been allocated to the fast track.

Court Disposition

Appeal allowed

Orders

  • Judge’s order for the defendant to pay £25,000 towards the claimant’s costs set aside.
  • Defendant to pay claimant’s costs subject to detailed assessment as if the case had been allocated to the fast track.