Liverpool Victoria Insurance Co Ltd v Khan & Ors [2022] EWHC B8 (Costs) (18 March 2021)

Liverpool Victoria Insurance Co Ltd v Khan & Ors [2022] EWHC B8 (Costs) (18 March 2021)

The Claimant is permitted to raise the indemnity principle argument at this stage of the detailed assessment proceedings. The court found that neither issue estoppel nor Henderson abuse precluded the Claimant from raising the point, as the hourly rates had been determined without argument on the indemnity principle, and justice required the point to be addressed to avoid potential unlawful payment. The court held that the indemnity principle and statutory provisions limiting recovery to legal aid rates must be considered, and the Claimant's application to raise the point was allowed.

Citation
[2022] EWHC B8 (Costs)
Parties
Claimant: Liverpool Victoria Insurance Co Ltd; First Defendant: Kamar Abbas Khan; Second Defendant: Shafiq Sultan; Third Defendant: Dr Asef Zafar; Fourth Defendant: Mohammed Shazad Ahmed
Jurisdiction
England and Wales
Judgment Date
18 March 2021
Procedural Posture
Detailed Assessment of Costs in Committal Proceedings / Post Judgment, Detailed Assessment of Costs
Outcome
Application granted; Claimant permitted to raise the indemnity principle argument limiting Fourth Defendant's recoverable costs to legal aid rates.
Legal Topics
Indemnity Principle, Legal Aid Costs Recovery, Issue Estoppel, Henderson Abuse, Conditional Fee Agreements, Committal Proceedings
Civil Procedure Costs Law Legal Aid Indemnity Principle Legal Aid Costs Recovery Issue Estoppel Henderson Abuse Conditional Fee Agreements +1 more

Case Brief

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Parties

Liverpool Victoria Insurance Co Ltd

Claimant

Kamar Abbas Khan

First Defendant

Shafiq Sultan

Second Defendant

Dr Asef Zafar

Third Defendant

Mohammed Shazad Ahmed

Fourth Defendant

Procedural Posture

Detailed Assessment of Costs in Committal Proceedings / Post Judgment, Detailed Assessment of Costs

Legal Issues

  1. 1 Whether the Claimant can raise the indemnity principle to limit the Fourth Defendant's recoverable costs to legal aid rates after hourly rates were previously determined
  2. 2 Whether issue estoppel or Henderson abuse prevents the Claimant from raising the indemnity principle at this stage
  3. 3 Whether the Fourth Defendant's costs recovery is limited by statutory provisions to legal aid rates

Ratio Decidendi

The Claimant is permitted to raise the indemnity principle argument at this stage of the detailed assessment proceedings. The court found that neither issue estoppel nor Henderson abuse precluded the Claimant from raising the point, as the hourly rates had been determined without argument on the indemnity principle, and justice required the point to be addressed to avoid potential unlawful payment. The court held that the indemnity principle and statutory provisions limiting recovery to legal aid rates must be considered, and the Claimant's application to raise the point was allowed.

Court Disposition

Application granted; Claimant permitted to raise the indemnity principle argument limiting Fourth Defendant's recoverable costs to legal aid rates.

Orders

  • Claimant allowed to argue that Fourth Defendant's recoverable costs are limited to legal aid rates under the indemnity principle and relevant statutory provisions.
  • Detailed assessment to proceed considering the indemnity principle argument.