JN Dairies Ltd v Johal Dairies Ltd & Anor [2011] EWHC 90211 (Costs) (23 August 2011)

JN Dairies Ltd v Johal Dairies Ltd & Anor [2011] EWHC 90211 (Costs) (23 August 2011)

Success fees on work done before the conditional fee agreements were entered into are not allowed, as they were not reasonably incurred. The retrospective imposition of significant additional liabilities without timely notice to the paying party is unreasonable. Only success fees on work done after the CFAs were entered into, or on parts of counsel's brief fees not incurred before the CFAs, are potentially recoverable.

Citation
[2011] EWHC 90211 (Costs)
Parties
Claimant: J N Dairies Limited; First Defendant: Johal Dairies Limited; Second Defendant: Gurbir Singh
Jurisdiction
England and Wales
Judgment Date
23 August 2011
Procedural Posture
Costs Assessment / Detailed Assessment of Costs Following Appeal
Outcome
Success fees on work done before the conditional fee agreements are disallowed; only success fees on work done after the agreements, or on parts of counsel's brief fees not incurred before the agreements, may be allowed subject to reasonableness.
Legal Topics
Conditional Fee Agreements, Success Fees, Retrospective Costs, Reasonableness of Costs
Civil Procedure Costs Conditional Fee Agreements Success Fees Retrospective Costs Reasonableness of Costs

Case Brief

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Parties

J N Dairies Limited

Claimant

Johal Dairies Limited

First Defendant

Gurbir Singh

Second Defendant

Procedural Posture

Costs Assessment / Detailed Assessment of Costs Following Appeal

Legal Issues

  1. 1 Whether the claimant can recover success fees for work done before entering into conditional fee agreements (CFAs) with solicitors and counsel
  2. 2 Whether retrospective success fees are reasonable and recoverable from the paying party

Ratio Decidendi

Success fees on work done before the conditional fee agreements were entered into are not allowed, as they were not reasonably incurred. The retrospective imposition of significant additional liabilities without timely notice to the paying party is unreasonable. Only success fees on work done after the CFAs were entered into, or on parts of counsel's brief fees not incurred before the CFAs, are potentially recoverable.

Court Disposition

Success fees on work done before the conditional fee agreements are disallowed; only success fees on work done after the agreements, or on parts of counsel's brief fees not incurred before the agreements, may be allowed subject to reasonableness.

Orders

  • Success fees on work done before the CFAs are not allowed.
  • Success fees on work done after the CFAs, or on relevant parts of counsel's brief fees, may be allowed subject to assessment.