Gallantgreen Ltd v BDB Pitmans LLP

Gallantgreen Ltd v BDB Pitmans LLP

The Defendant's original estimate was relied upon by the Claimant when entering the retainer. The Defendant failed to adequately communicate changes to scope and estimate before incurring further costs. The Claimant is entitled to have the original estimate taken as a yardstick for reasonableness, and recoverable costs are unlikely to exceed the upper end of the estimate (£10,000) plus a 20% margin (£12,000 plus VAT).

Parties
Claimant: Gallantgreen Ltd; Defendant: BDB Pitmans LLP
Jurisdiction
England and Wales
Judgment Date
04 March 2025
Procedural Posture
Costs Assessment / Detailed Assessment Hearing
Outcome
Guidance issued for compromise or further assessment; costs capped at £12,000 plus VAT unless parties persuade otherwise.
Legal Topics
Solicitor Client Costs, Estimates, Retainer Agreements, Misrepresentation, Assessment of Costs
Civil Procedure Legal Costs Solicitor Client Costs Estimates Retainer Agreements Misrepresentation Assessment of Costs

Case Brief

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Parties

Gallantgreen Ltd

Claimant

BDB Pitmans LLP

Defendant

Procedural Posture

Costs Assessment / Detailed Assessment Hearing

Legal Issues

  1. 1 Whether the Defendant's costs estimate was binding or subject to revision
  2. 2 Whether the Claimant relied on the Defendant's estimate when entering the retainer
  3. 3 Whether costs incurred outside the original estimate are recoverable

Ratio Decidendi

The Defendant's original estimate was relied upon by the Claimant when entering the retainer. The Defendant failed to adequately communicate changes to scope and estimate before incurring further costs. The Claimant is entitled to have the original estimate taken as a yardstick for reasonableness, and recoverable costs are unlikely to exceed the upper end of the estimate (£10,000) plus a 20% margin (£12,000 plus VAT).

Court Disposition

Guidance issued for compromise or further assessment; costs capped at £12,000 plus VAT unless parties persuade otherwise.

Orders

  • No costs recoverable for work pre-21 December 2023.
  • Defendant to consider concessions for duplicated work and complaints process time.