O'Brien v Shorrock & Anor [2015] EWHC 1630 (QB) (12 June 2015)

O'Brien v Shorrock & Anor [2015] EWHC 1630 (QB) (12 June 2015)

The proper success fee is 67% based on the solicitors' risk assessment and the arithmetic method, not 75% as previously allowed. The relevant date for notice under CPD 19.4(2) is the date the CFA was made (21 October 2009), not its retrospective start date. Relief from sanction is granted, but the success fee for costs incurred before the CFA date is reduced to 20% (half of the 40% previously allowed), and for costs after the CFA date, the success fee is set at 67%.

Citation
[2015] EWHC 1630
Parties
Claimant/respondent: John Joseph O'Brien (a protected party suing by his father and litigation friend Arthur O'Brien); First Defendant: Michael Shorrock; Appellant/second Defendant: Motor Insurers Bureau
Jurisdiction
England and Wales
Judgment Date
12 June 2015
Procedural Posture
Appeal (costs Assessment) / High Court Appeal From Regional Costs Judge
Outcome
Appeal allowed in part
Legal Topics
Conditional Fee Agreements, Success Fees, Relief From Sanctions, Practice Direction Compliance, Retrospective Cfas
Civil Procedure Costs Conditional Fee Agreements Success Fees Relief From Sanctions Practice Direction Compliance Retrospective Cfas

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Parties

John Joseph O'Brien (a protected party suing by his father and litigation friend Arthur O'Brien)

Claimant/respondent

Michael Shorrock

First Defendant

Motor Insurers Bureau

Appellant/second Defendant

Procedural Posture

Appeal (costs Assessment) / High Court Appeal From Regional Costs Judge

Legal Issues

  1. 1 Whether the success fee under the CFA should be assessed at 5%, 67%, or 75%
  2. 2 Whether the date in CPD paragraph 19.4(2) refers to the date the CFA was made or its retrospective start date
  3. 3 Whether relief from sanction should be granted for non-compliance with the Practice Direction

Ratio Decidendi

The proper success fee is 67% based on the solicitors' risk assessment and the arithmetic method, not 75% as previously allowed. The relevant date for notice under CPD 19.4(2) is the date the CFA was made (21 October 2009), not its retrospective start date. Relief from sanction is granted, but the success fee for costs incurred before the CFA date is reduced to 20% (half of the 40% previously allowed), and for costs after the CFA date, the success fee is set at 67%.

Court Disposition

Appeal allowed in part

Orders

  • Success fee for costs from 6 November 2008 to 21 October 2009 set at 20%
  • Success fee for costs after 21 October 2009 set at 67%