Leigh v Michelin Tyre Plc [2003] EWCA Civ 1766 (08 December 2003)

Leigh v Michelin Tyre Plc [2003] EWCA Civ 1766 (08 December 2003)

A party is not to be bound by an inadequate costs estimate for the sole reason that it was made and proved to be too low. The court may take the estimate into account as a factor among others when assessing costs, but only where there is evidence of reliance by the paying party, or where the court would have managed the case differently had a realistic estimate been given, or where the difference is unexplained. In the absence of such factors, and where the costs claimed are otherwise reasonable and proportionate, the estimate alone does not cap recoverable costs.

Citation
[2003] EWCA Civ 1766
Parties
Claimant/respondent: Leigh; Appellants/defendants: Michelin Tyre PLC
Jurisdiction
England and Wales
Judgment Date
08 December 2003
Procedural Posture
Civil Appeal / Appeal From Telford County Court to Court of Appeal (civil Division)
Outcome
Appeal dismissed
Legal Topics
Costs Estimates, Assessment of Costs, Practice Directions, Indemnity Principle, Case Management
Civil Procedure Costs Costs Estimates Assessment of Costs Practice Directions Indemnity Principle Case Management

Case Brief

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Parties

Leigh

Claimant/respondent

Michelin Tyre PLC

Appellants/defendants

Procedural Posture

Civil Appeal / Appeal From Telford County Court to Court of Appeal (civil Division)

Legal Issues

  1. 1 Whether a party is bound by an inadequate costs estimate for the purposes of costs assessment under CPR 43 PD para 6.6
  2. 2 How courts should take into account costs estimates when assessing costs

Ratio Decidendi

A party is not to be bound by an inadequate costs estimate for the sole reason that it was made and proved to be too low. The court may take the estimate into account as a factor among others when assessing costs, but only where there is evidence of reliance by the paying party, or where the court would have managed the case differently had a realistic estimate been given, or where the difference is unexplained. In the absence of such factors, and where the costs claimed are otherwise reasonable and proportionate, the estimate alone does not cap recoverable costs.

Court Disposition

Appeal dismissed

Orders

  • Appellants to pay the respondents costs of the appeal in the agreed sum of £13,032.51
  • Stay of Execution ordered by Dyson LJ on 22 May 2003 to be removed