Lahey v Pirelli Tyres Ltd [2007] EWCA Civ 91 (14 February 2007)

Lahey v Pirelli Tyres Ltd [2007] EWCA Civ 91 (14 February 2007)

A costs judge has no jurisdiction at the outset of a detailed assessment to order that only a proportion of the assessed costs be paid following acceptance of a Part 36 payment; the judge must assess costs in accordance with the standard basis and may only disallow costs that are unreasonably incurred or disproportionate during the assessment process.

Citation
[2007] EWCA Civ 91
Parties
Claimant/respondent: Joseph Lahey; Defendant/appellant: Pirelli Tyres Limited
Jurisdiction
England and Wales
Judgment Date
14 February 2007
Procedural Posture
Civil Appeal / Second Appeal From Detailed Assessment of Costs Following Acceptance of Part 36 Payment
Outcome
Appeal dismissed
Legal Topics
Detailed Assessment of Costs, Part 36 Offers, Jurisdiction of Costs Judge, Proportionality of Costs, Court's Discretion in Costs Orders
Civil Procedure Costs Detailed Assessment of Costs Part 36 Offers Jurisdiction of Costs Judge Proportionality of Costs Court's Discretion in Costs Orders

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Parties

Joseph Lahey

Claimant/respondent

Pirelli Tyres Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Second Appeal From Detailed Assessment of Costs Following Acceptance of Part 36 Payment

Legal Issues

  1. 1 Whether a costs judge has jurisdiction at the outset of a detailed assessment to order that a paying party must pay only a proportion of the assessed costs after acceptance of a Part 36 payment
  2. 2 Interpretation of CPR rules 44.3, 44.4, 44.5, and 44.14 in the context of costs assessment

Ratio Decidendi

A costs judge has no jurisdiction at the outset of a detailed assessment to order that only a proportion of the assessed costs be paid following acceptance of a Part 36 payment; the judge must assess costs in accordance with the standard basis and may only disallow costs that are unreasonably incurred or disproportionate during the assessment process.

Court Disposition

Appeal dismissed

Orders

  • No jurisdiction for costs judge to order a proportionate reduction of assessed costs at the outset of detailed assessment
  • Costs to be assessed in accordance with standard basis; only unreasonable or disproportionate costs may be disallowed during assessment