MXX v United Lincolnshire NHS Trust

MXX v United Lincolnshire NHS Trust

The only improper conduct established was the insertion of a substantially higher hourly rate for a Grade A fee earner in the costs budget than the Claimant was obliged to pay. There was insufficient evidence to find further improper conduct in failing to correct the budget before or at the CCMC. The sanction imposed by Master Rowley—disallowing the costs of the costs management elements—was not in error. The question of whether the misstatement is a good reason to depart from the budget remains to be determined at detailed assessment.

Parties
Claimant/respondent: MXX (a protected party via her husband and litigation friend RXX); Defendant/appellant: United Lincolnshire NHS Trust
Jurisdiction
England and Wales
Judgment Date
27 June 2019
Procedural Posture
Civil Appeal / Appeal From Senior Courts Costs Office to High Court (queen's Bench Division)
Outcome
Appeal allowed in part; certain grounds succeed, others dismissed. Sanction imposed by Master Rowley upheld. Issue of departure from budget remitted for detailed assessment.
Legal Topics
Costs Budgeting, Improper Conduct Under CPR 44.11, Indemnity Principle, Detailed Assessment of Costs
Civil Procedure Costs Law Costs Budgeting Improper Conduct Under CPR 44.11 Indemnity Principle Detailed Assessment of Costs

Case Brief

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Parties

MXX (a protected party via her husband and litigation friend RXX)

Claimant/respondent

United Lincolnshire NHS Trust

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Senior Courts Costs Office to High Court (queen's Bench Division)

Legal Issues

  1. 1 Whether failure to correct an overstated hourly rate in a costs budget constitutes improper or unreasonable conduct under CPR 44.11
  2. 2 Whether the sanction imposed for such conduct was appropriate
  3. 3 Whether the misstatement in the costs budget is a good reason to depart from the budget under CPR 3.18

Ratio Decidendi

The only improper conduct established was the insertion of a substantially higher hourly rate for a Grade A fee earner in the costs budget than the Claimant was obliged to pay. There was insufficient evidence to find further improper conduct in failing to correct the budget before or at the CCMC. The sanction imposed by Master Rowley—disallowing the costs of the costs management elements—was not in error. The question of whether the misstatement is a good reason to depart from the budget remains to be determined at detailed assessment.

Court Disposition

Appeal allowed in part; certain grounds succeed, others dismissed. Sanction imposed by Master Rowley upheld. Issue of departure from budget remitted for detailed assessment.

Orders

  • Detailed assessment referred back to Master Rowley to determine if the misstatement is a good reason to depart from the budget.
  • Claimant's costs of the costs management elements or non-phase part of the bill to be disallowed.