Spiralstem Ltd v Marks & Spencer Plc [2007] EWHC 90084 (Costs) (01 August 2007)

Spiralstem Ltd v Marks & Spencer Plc [2007] EWHC 90084 (Costs) (01 August 2007)

The appropriate success fee is determined by applying the ready reckoner formula to the assessed risk at the time the CFA was entered into. The court found the prospects of success were 60%, resulting in a 67% success fee. Modifying the formula to reflect split trials or post-liability risk reduction is not supported by authority and would introduce unnecessary complexity.

Citation
[2007] EWHC 90084 (Costs)
Parties
Claimant: Spiralstem Limited; Defendant: Marks & Spencer PLC
Jurisdiction
England and Wales
Judgment Date
01 August 2007
Procedural Posture
Costs Assessment / Detailed Assessment of Success Fee Under CFA
Outcome
Success fee set at 67% of base costs (excluding the 8% postponement element) recoverable from the defendant.
Legal Topics
Conditional Fee Agreements, Success Fees, Detailed Assessment, Costs Reasonableness
Civil Procedure Costs Conditional Fee Agreements Success Fees Detailed Assessment Costs Reasonableness

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Parties

Spiralstem Limited

Claimant

Marks & Spencer PLC

Defendant

Procedural Posture

Costs Assessment / Detailed Assessment of Success Fee Under CFA

Legal Issues

  1. 1 What is the reasonable and proportionate success fee to be allowed under the claimant's CFA for costs recovery from the defendant?
  2. 2 Should the 'ready reckoner' formula for success fees be modified to reflect split trials on liability and quantum?

Ratio Decidendi

The appropriate success fee is determined by applying the ready reckoner formula to the assessed risk at the time the CFA was entered into. The court found the prospects of success were 60%, resulting in a 67% success fee. Modifying the formula to reflect split trials or post-liability risk reduction is not supported by authority and would introduce unnecessary complexity.

Court Disposition

Success fee set at 67% of base costs (excluding the 8% postponement element) recoverable from the defendant.

Orders

  • Defendant to pay claimant a success fee of 67% on base costs allowed for claimant's solicitors' fees.