Crane v Canons Leisure Centre

Crane v Canons Leisure Centre

The majority held that the work performed by the independent costs draftsmen was solicitors’ work, for which the solicitors remained responsible to the client, and thus the fees are properly classified as base costs under the CCFA, attracting a success fee. The court should not require a different or lower success fee for costs assessment proceedings, as the statutory and contractual scheme does not provide for multiple success fees or retrospective adjustment.

Parties
Appellant: Nicholas Crane; Respondent: Canons Leisure Centre
Jurisdiction
England and Wales
Judgment Date
19 December 2007
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal allowed (by majority)
Legal Topics
Conditional Fee Agreements, Costs Assessment, Success Fees, Disbursements Vs Profit Costs
Civil Procedure Costs Law Conditional Fee Agreements Costs Assessment Success Fees Disbursements Vs Profit Costs

Case Brief

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Parties

Nicholas Crane

Appellant

Canons Leisure Centre

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the fees of independent costs draftsmen instructed by solicitors are to be classified as profit costs (base costs) or disbursements under a Collective Conditional Fee Agreement (CCFA), and whether a success fee is payable on such fees.
  2. 2 Whether a different or lower success fee should apply to costs assessment proceedings as opposed to the main litigation.

Ratio Decidendi

The majority held that the work performed by the independent costs draftsmen was solicitors’ work, for which the solicitors remained responsible to the client, and thus the fees are properly classified as base costs under the CCFA, attracting a success fee. The court should not require a different or lower success fee for costs assessment proceedings, as the statutory and contractual scheme does not provide for multiple success fees or retrospective adjustment.

Court Disposition

appeal allowed (by majority)

Orders

  • The appeal is allowed. The fees of the costs draftsmen are to be treated as base costs and attract a success fee under the CCFA.