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 was not supported by evidence as improper or unreasonable conduct beyond the original misstatement. The sanction imposed by Master Rowley was not in error of law and stands, but the issue of whether the misstatement is a good reason to depart from the approved budget is to be determined at detailed assessment.

Citation
[2019] EWHC 1624 (QB)
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) / 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, Sanctions for Costs Misconduct, Departure From Approved Costs Budget
Civil Procedure Costs Costs Budgeting Improper Conduct Under CPR 44.11 Indemnity Principle Sanctions for Costs Misconduct Departure From Approved Costs Budget

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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) / 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 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 approved budget under CPR 3.18

Ratio Decidendi

The failure to correct the overstated hourly rate in the costs budget was not supported by evidence as improper or unreasonable conduct beyond the original misstatement. The sanction imposed by Master Rowley was not in error of law and stands, but the issue of whether the misstatement is a good reason to depart from the approved budget is to be determined at detailed assessment.

Court Disposition

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

Orders

  • The sanction imposed by Master Rowley (disallowing costs of costs management elements) stands.
  • The issue of whether the misstatement is a good reason to depart from the approved budget is remitted to Master Rowley for determination at detailed assessment.