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 analyse the actual risks relevant to the assessment of the success fee, particularly the proportion of costs at risk and the likelihood of failing to beat a Part 36 offer. There was nothing exceptional about the case to justify a success fee above the standard 20%, and statutory provisions reduced the allowable fee to 12.5%.

Citation
[2018] EWHC 3570 (QB)
Parties
Claimant/respondent: NJL; Defendant/appellant: PTE
Jurisdiction
England and Wales
Judgment Date
20 December 2018
Procedural Posture
Personal Injury Appeal / Appeal From District Judge's Costs Assessment
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

Personal Injury Appeal / Appeal From District Judge's Costs Assessment

Legal Issues

  1. 1 What is the appropriate success fee to be allowed under a conditional fee agreement where liability has been admitted prior to the agreement?
  2. 2 Did the District Judge err in awarding a 65% success fee rather than the standard or usual rate in such cases?

Ratio Decidendi

The District Judge erred by failing to analyse the actual risks relevant to the assessment of the success fee, particularly the proportion of costs at risk and the likelihood of failing to beat a Part 36 offer. There was nothing exceptional about the case to justify a success fee above the standard 20%, and statutory provisions reduced the allowable fee to 12.5%.

Court Disposition

Appeal allowed

Orders

  • The success fee for both CFA2 and CFA3 is set at 12.5%
  • District Judge's order awarding a 65% success fee is set aside