Eversheds LLP v Cuddy & Anor

Eversheds LLP v Cuddy & Anor

Eversheds did not give a binding estimate of £150,000 or £200,000; the conversation at the Piercefield pub did not amount to a contractual estimate. However, Eversheds failed to comply with their obligations under the retainer and the Code to provide regular and adequate costs information to Mr Cuddy. As a result, while the pre-summary judgment costs are allowed as assessed, the post-summary judgment costs are reduced to reflect what is reasonable for Mr Cuddy to pay, given the lack of information and opportunity to manage costs. The total recoverable costs are reduced to £325,000 inclusive of VAT.

Parties
Claimant: Eversheds LLP; Defendants: Michael and Simone Cuddy
Jurisdiction
England and Wales
Judgment Date
17 December 2009
Procedural Posture
Detailed Assessment of Solicitor Client Costs / Judgment After Oral Hearing and Submissions
Outcome
Costs assessed and reduced; final costs certificate to issue for reduced sum.
Legal Topics
Solicitors' Costs, Estimates and Client Care, Detailed Assessment, Solicitors Act 1974, Professional Conduct
Civil Procedure Legal Profession Regulation Solicitors' Costs Estimates and Client Care Detailed Assessment Solicitors Act 1974 Professional Conduct

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Parties

Eversheds LLP

Claimant

Michael and Simone Cuddy

Defendants

Procedural Posture

Detailed Assessment of Solicitor Client Costs / Judgment After Oral Hearing and Submissions

Legal Issues

  1. 1 Whether Eversheds LLP gave a binding estimate of costs to Mr Cuddy
  2. 2 Whether Eversheds' costs should be limited by any such estimate or otherwise reduced
  3. 3 Whether Eversheds complied with their obligations to provide costs information under the Solicitors Act 1974, the retainer, and the Solicitors Costs Information Client Care Code 1999

Ratio Decidendi

Eversheds did not give a binding estimate of £150,000 or £200,000; the conversation at the Piercefield pub did not amount to a contractual estimate. However, Eversheds failed to comply with their obligations under the retainer and the Code to provide regular and adequate costs information to Mr Cuddy. As a result, while the pre-summary judgment costs are allowed as assessed, the post-summary judgment costs are reduced to reflect what is reasonable for Mr Cuddy to pay, given the lack of information and opportunity to manage costs. The total recoverable costs are reduced to £325,000 inclusive of VAT.

Court Disposition

Costs assessed and reduced; final costs certificate to issue for reduced sum.

Orders

  • Eversheds' costs and disbursements assessed at £325,000 inclusive of VAT.
  • Deduction of £150,000 paid on account and £57,500 paid to Mr Hollington, leaving a balance due of £117,500.