Fortune v Roe [2010] EWHC 90180 (Costs) (04 November 2010)

Fortune v Roe [2010] EWHC 90180 (Costs) (04 November 2010)

A 100% success fee is unreasonable where, at the time the CFA was entered into, liability had already been admitted and judgment entered, eliminating the risk of not recovering costs. The only remaining risk was failing to beat a Part 36 offer, which justifies a 20% success fee, not 100%.

Citation
[2010] EWHC 90180 (Costs)
Parties
Claimant: Arlene Fortune; Defendant: Jonathan Roe
Jurisdiction
England and Wales
Judgment Date
04 November 2010
Procedural Posture
Detailed Assessment of Costs / Post Settlement Costs Assessment
Outcome
Success fee assessed at 20%
Legal Topics
Conditional Fee Agreements, Success Fees, Personal Injury, Costs Assessment

Case Brief

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Parties

Arlene Fortune

Claimant

Jonathan Roe

Defendant

Procedural Posture

Detailed Assessment of Costs / Post Settlement Costs Assessment

  1. 1 Whether a 100% success fee under the Claimant's CFA is reasonable given the circumstances at the time the CFA was entered into
  2. 2 Whether the risk assessment justifies a 100% success fee when liability had already been admitted and judgment entered

Ratio Decidendi

A 100% success fee is unreasonable where, at the time the CFA was entered into, liability had already been admitted and judgment entered, eliminating the risk of not recovering costs. The only remaining risk was failing to beat a Part 36 offer, which justifies a 20% success fee, not 100%.

Court Disposition

Success fee assessed at 20%

Orders

  • The Defendant to pay a 20% success fee to the Claimant, amounting to £18,723.41 plus VAT of £3,276.59, total £22,000.
  • The Defendant's costs of this issue assessed at £4,774.38 to be set off against the Claimant's agreed costs.