NJL v PTE [2018] EWHC 3570 (QB) (20 December 2018)

NJL v PTE [2018] EWHC 3570 (QB) (20 December 2018)

The District Judge erred by failing to conduct a proper risk analysis and by awarding a 65% success fee without justification. In cases where liability is admitted before the CFA is entered into, the only significant risk is failing to beat a Part 36 offer, which is typically low and does not justify a success fee above 20%. Therefore, the appropriate success fee is 12.5% as per CPR 45.19.

Citation
[2018] EWHC 3570
Parties
Claimant/respondent: NJL; Defendant/appellant: PTE
Jurisdiction
England and Wales
Judgment Date
20 December 2018
Procedural Posture
Appeal (costs Assessment) / High Court (queen's Bench Division) on Appeal From District Judge
Outcome
Appeal allowed
Legal Topics
Conditional Fee Agreements, Success Fees, Costs Assessment, Part 36 Offers, Quantum of Damages
Civil Procedure Personal Injury Conditional Fee Agreements Success Fees Costs Assessment Part 36 Offers Quantum of Damages

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Parties

NJL

Claimant/respondent

PTE

Defendant/appellant

Procedural Posture

Appeal (costs Assessment) / High Court (queen's Bench Division) on Appeal From District Judge

Legal Issues

  1. 1 What is the appropriate success fee to be allowed under a conditional fee agreement (CFA) entered into after liability was admitted in a catastrophic personal injury claim?
  2. 2 Did the District Judge err in awarding a 65% success fee rather than the standard 12.5% or 20%?
  3. 3 How should the risks associated with Part 36 offers and quantum disputes be reflected in the success fee?

Ratio Decidendi

The District Judge erred by failing to conduct a proper risk analysis and by awarding a 65% success fee without justification. In cases where liability is admitted before the CFA is entered into, the only significant risk is failing to beat a Part 36 offer, which is typically low and does not justify a success fee above 20%. Therefore, the appropriate success fee is 12.5% as per CPR 45.19.

Court Disposition

Appeal allowed

Orders

  • District Judge's order set aside
  • Success fee for both CFA2 and CFA3 set at 12.5%