Hanley v Smith & Anor

Hanley v Smith & Anor

The Claimant is entitled to interest on costs at the statutory rate from the date of the final approved order, less the conceded 23 days, as the right to interest arises from statute and judgment, not from contractual liability or actual out-of-pocket loss. The appropriate success fees are 82% for solicitors (reflecting a 55% prospect of success and adjustment for double-counted causation risk), 50% for junior counsel (as per the two-stage CFA), and 54% for leading counsel (reflecting a 65% prospect of success at the time of his CFA, with main risk being Part 36 offers on quantum).

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 Claim / Judgment on Points of Dispute in Detailed Assessment
Outcome
Claimant succeeds on both issues: entitled to interest on costs from date of approved order (less 23 days), and success fees set at 82% (solicitors), 50% (junior counsel), 54% (leading counsel).
Legal Topics
Interest on Costs, Conditional Fee Agreements (cfa), Success Fees, Judgments Act 1838 S.17, Part 36 Offers
Civil Procedure Personal Injury Costs Interest on Costs Conditional Fee Agreements (cfa) Success Fees Judgments Act 1838 S.17 Part 36 Offers

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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 Claim / Judgment on Points of Dispute in Detailed Assessment

Legal Issues

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

Ratio Decidendi

The Claimant is entitled to interest on costs at the statutory rate from the date of the final approved order, less the conceded 23 days, as the right to interest arises from statute and judgment, not from contractual liability or actual out-of-pocket loss. The appropriate success fees are 82% for solicitors (reflecting a 55% prospect of success and adjustment for double-counted causation risk), 50% for junior counsel (as per the two-stage CFA), and 54% for leading counsel (reflecting a 65% prospect of success at the time of his CFA, with main risk being Part 36 offers on quantum).

Court Disposition

Claimant succeeds on both issues: entitled to interest on costs from date of approved order (less 23 days), and success fees set at 82% (solicitors), 50% (junior counsel), 54% (leading counsel).

Orders

  • Interest on costs at 8% per annum from date of final approved order less 23 days for delay.
  • Success fee for solicitors assessed at 82%.