Sarwar v Alam

Sarwar v Alam

The full insurance premium of £62,500 is recoverable as it was reasonable in the circumstances and there was no breach of the indemnity principle; a 100% success fee is justified due to the substantial risk and finely balanced case; the appropriate hourly rate for the claimant's solicitors for the Court of Appeal aspect is £215, not £350, as the higher rate was not supported by sufficient evidence.

Parties
Claimant: Imran Sarwar; Defendant: Muhammad Alam
Jurisdiction
England and Wales
Judgment Date
07 March 2003
Procedural Posture
Costs Assessment / Detailed Assessment After Court of Appeal Judgment
Outcome
Claimant's costs assessed with full insurance premium and 100% success fee allowed; hourly rate for Court of Appeal work set at £215.
Legal Topics
Conditional Fee Agreements (cfas), After the Event (ate) Insurance, Success Fees, Solicitor Hourly Rates, Indemnity Principle, Champerty

Case Brief

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Parties

Imran Sarwar

Claimant

Muhammad Alam

Defendant

Procedural Posture

Costs Assessment / Detailed Assessment After Court of Appeal Judgment

  1. 1 Whether the insurance premium of £62,500 for ATE cover is reasonable and recoverable
  2. 2 Whether the success fee of 100% is justified and recoverable
  3. 3 Whether the hourly rate of £350 claimed by the claimant's solicitors is reasonable

Ratio Decidendi

The full insurance premium of £62,500 is recoverable as it was reasonable in the circumstances and there was no breach of the indemnity principle; a 100% success fee is justified due to the substantial risk and finely balanced case; the appropriate hourly rate for the claimant's solicitors for the Court of Appeal aspect is £215, not £350, as the higher rate was not supported by sufficient evidence.

Court Disposition

Claimant's costs assessed with full insurance premium and 100% success fee allowed; hourly rate for Court of Appeal work set at £215.

Orders

  • Full insurance premium of £62,500 is recoverable.
  • Success fee of 100% is allowed.