RNB v London Borough of Newham [2017] EWHC B15 (Costs) (04 August 2017)

RNB v London Borough of Newham [2017] EWHC B15 (Costs) (04 August 2017)

A reduction in hourly rates for incurred costs is a 'good reason' to depart from the approved/agreed costs budget for budgeted costs; therefore, the reduced rates must be applied to the budgeted costs as well as the incurred costs to ensure proportionality and fairness.

Citation
[2017] EWHC B15 (Costs)
Parties
Claimant: Claimant; Defendant: Defendant
Jurisdiction
England and Wales
Judgment Date
04 August 2017
Procedural Posture
Detailed Assessment of Costs / Post Settlement, Detailed Assessment Following Consent Order
Outcome
Defendant's argument accepted; hourly rates as assessed for incurred costs to be applied to budgeted costs.
Legal Topics
Costs Management Order, Detailed Assessment, Hourly Rates, Proportionality, Good Reason to Depart From Budget
Civil Procedure Costs Costs Management Order Detailed Assessment Hourly Rates Proportionality Good Reason to Depart From Budget

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Parties

Claimant

Claimant

Defendant

Defendant

Procedural Posture

Detailed Assessment of Costs / Post Settlement, Detailed Assessment Following Consent Order

Legal Issues

  1. 1 Whether reductions to hourly rates for incurred costs should be applied to budgeted costs post-CMO
  2. 2 Whether reduction in hourly rates constitutes a 'good reason' to depart from the approved/agreed costs budget

Ratio Decidendi

A reduction in hourly rates for incurred costs is a 'good reason' to depart from the approved/agreed costs budget for budgeted costs; therefore, the reduced rates must be applied to the budgeted costs as well as the incurred costs to ensure proportionality and fairness.

Court Disposition

Defendant's argument accepted; hourly rates as assessed for incurred costs to be applied to budgeted costs.

Orders

  • Parties to agree figures in light of judgment.
  • Parties to discuss and, if necessary, restore for determination of costs of assessment and permission to appeal.