Hanley v Smith & Anor [2009] EWHC 90144 (Costs) (17 June 2009)

Hanley v Smith & Anor [2009] EWHC 90144 (Costs) (17 June 2009)

The Claimant is entitled to interest on costs at the statutory rate from the date of the final approved order, less a 23-day period for delay, as the right arises from statute and not from contractual liability or actual out-of-pocket loss. The appropriate success fee for solicitors is reduced to 82% due to some double-counting of risk, junior counsel's 50% is reasonable, and leading counsel's 82% is justified given the remaining Part 36 risk at the time of his CFA.

Citation
[2009] EWHC 90144 (Costs)
Parties
Claimant: Paul Keith Hanley (a Patient suing by his brother and litigation friend Steven Roy Hamilton); First Defendant: Robert Smith; Second Defendant: The Motor Insurer's Bureau
Jurisdiction
England and Wales
Judgment Date
17 June 2009
Procedural Posture
Detailed Assessment of Costs in Personal Injury Litigation / Costs Assessment Following Settlement Approval
Outcome
Claimant succeeds on both issues.
Legal Topics
Interest on Costs, Conditional Fee Agreements (cfa), Success Fees, Judgments Act 1838, Part 36 Offers
Civil Procedure Personal Injury Costs Interest on Costs Conditional Fee Agreements (cfa) Success Fees Judgments Act 1838 Part 36 Offers

Case Brief

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Parties

Paul Keith Hanley (a Patient suing by his brother and litigation friend Steven Roy Hamilton)

Claimant

Robert Smith

First Defendant

The Motor Insurer's Bureau

Second Defendant

Procedural Posture

Detailed Assessment of Costs in Personal Injury Litigation / Costs Assessment Following Settlement Approval

Legal Issues

  1. 1 Whether the Claimant is entitled to interest on costs under the Judgments Act 1838 s.17 from date of approval of settlement
  2. 2 What level of success fees are appropriate for solicitors and counsel in this case

Ratio Decidendi

The Claimant is entitled to interest on costs at the statutory rate from the date of the final approved order, less a 23-day period for delay, as the right arises from statute and not from contractual liability or actual out-of-pocket loss. The appropriate success fee for solicitors is reduced to 82% due to some double-counting of risk, junior counsel's 50% is reasonable, and leading counsel's 82% is justified given the remaining Part 36 risk at the time of his CFA.

Court Disposition

Claimant succeeds on both issues.

Orders

  • Interest on costs awarded at Judgments Act rate from date of final approved order less 23 days for delay.
  • Solicitors' success fee assessed at 82%.