MXX v United Lincolnshire NHS Trust [2019] EWHC 1624 (QB) (27 June 2019)

MXX v United Lincolnshire NHS Trust [2019] EWHC 1624 (QB) (27 June 2019)

The failure to correct the overstated hourly rate in the costs budget, while regrettable, was not established on the evidence to be improper or unreasonable conduct under CPR 44.11 beyond the original misstatement. The Costs Master's sanction of disallowing the costs of the costs management elements was not in error. The issue of whether the misstatement is a good reason to depart from the budget under CPR 3.18 remains to be determined at detailed assessment.

Citation
[2019] EWHC 1624
Parties
Respondent/claimant: MXX (a protected party via her husband and litigation friend RXX); Appellant/defendant: United Lincolnshire NHS Trust
Jurisdiction
England and Wales
Judgment Date
27 June 2019
Procedural Posture
Appeal From Senior Courts Costs Office (detailed Assessment of Costs) / High Court (queen's Bench Division) Judgment on Appeal
Outcome
Appeal allowed in part; some grounds succeed, others fail.
Legal Topics
Costs Budgeting, Improper Conduct Under CPR 44.11, Indemnity Principle, Detailed Assessment of Costs, Sanctions for Misconduct
Civil Procedure Costs Costs Budgeting Improper Conduct Under CPR 44.11 Indemnity Principle Detailed Assessment of Costs Sanctions for Misconduct

Case Brief

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Parties

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

Respondent/claimant

United Lincolnshire NHS Trust

Appellant/defendant

Procedural Posture

Appeal From Senior Courts Costs Office (detailed Assessment of Costs) / High Court (queen's Bench Division) Judgment on Appeal

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 such conduct warrants a sanction and, if so, what sanction is appropriate
  3. 3 Whether the misstatement in the costs budget is a good reason to depart from the approved budget under CPR 3.18

Ratio Decidendi

The failure to correct the overstated hourly rate in the costs budget, while regrettable, was not established on the evidence to be improper or unreasonable conduct under CPR 44.11 beyond the original misstatement. The Costs Master's sanction of disallowing the costs of the costs management elements was not in error. The issue of whether the misstatement is a good reason to depart from the budget under CPR 3.18 remains to be determined at detailed assessment.

Court Disposition

Appeal allowed in part; some grounds succeed, others fail.

Orders

  • The detailed assessment of costs is referred back to Master Rowley to determine whether the misstatement in the costs budget is a good reason to depart from the approved budget under CPR 3.18.
  • The sanction imposed by Master Rowley (disallowing costs of costs management elements) stands.