Sarwar v Alam [2003] EWHC 9001 (Costs) (7 March 2003)

Sarwar v Alam [2003] EWHC 9001 (Costs) (7 March 2003)

The full insurance premium of £62,500 is recoverable as it was reasonable in the circumstances and not a breach of the indemnity principle; a 100% success fee is justified due to the high risk and finely balanced nature of the case; the appropriate hourly rate for the claimant's solicitors for the Court of Appeal work is £215, not the claimed £350.

Citation
[2003] EWHC 9001 (Costs)
Parties
Claimant: Imran Sarwar; Defendant: Muhammad Alam
Jurisdiction
England and Wales
Judgment Date
07 March 2003
Procedural Posture
Costs Assessment / Detailed Assessment Following Court of Appeal Decision
Outcome
Claimant's costs allowed in part; insurance premium and 100% success fee allowed; hourly rate reduced to £215 for Court of Appeal work.
Legal Topics
Conditional Fee Agreements (cfas), After the Event (ate) Insurance, Success Fees, Solicitors' Hourly Rates, Indemnity Principle
Civil Procedure Costs Conditional Fee Agreements (cfas) After the Event (ate) Insurance Success Fees Solicitors' Hourly Rates Indemnity Principle

Case Brief

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Parties

Imran Sarwar

Claimant

Muhammad Alam

Defendant

Procedural Posture

Costs Assessment / Detailed Assessment Following Court of Appeal Decision

Legal Issues

  1. 1 Whether the insurance premium of £62,500 for ATE cover is reasonable and recoverable
  2. 2 Whether the claimed 100% success fee is justified
  3. 3 What is the appropriate hourly rate for the claimant's solicitors for Court of Appeal work

Ratio Decidendi

The full insurance premium of £62,500 is recoverable as it was reasonable in the circumstances and not a breach of the indemnity principle; a 100% success fee is justified due to the high risk and finely balanced nature of the case; the appropriate hourly rate for the claimant's solicitors for the Court of Appeal work is £215, not the claimed £350.

Court Disposition

Claimant's costs allowed in part; insurance premium and 100% success fee allowed; hourly rate reduced to £215 for Court of Appeal work.

Orders

  • Full insurance premium of £62,500 recoverable
  • 100% success fee allowed