PAUL RICHARDS & Anor v SPEECHLY BIRCHAM LLP & Anor

PAUL RICHARDS & Anor v SPEECHLY BIRCHAM LLP & Anor

The Defendants' refusal to mediate was unreasonable but did not justify indemnity costs; costs are awarded to the Claimants on the standard basis. A payment on account of £713,000 including VAT is reasonable. Pre-judgment interest is set at 2% above base rate from 1 December 2015. Permission to appeal is refused for both parties as their proposed grounds have no real prospect of success. Each party bears its own costs for the consequential matters judgment.

Parties
Claimant: Paul Richards; Claimant: Keith Purves; Defendant: Speechly Bircham LLP; Defendant: Charles Russell Speechlys LLP
Jurisdiction
England and Wales
Judgment Date
16 June 2022
Procedural Posture
Commercial Claim / Judgment on Consequential Matters
Outcome
Claimants awarded costs on the standard basis; payment on account of costs ordered; pre-judgment interest set; permission to appeal refused for both parties; no order as to costs of consequential matters judgment.
Legal Topics
Costs Assessment, Interest on Judgment, Permission to Appeal, Professional Negligence, Alternative Dispute Resolution (adr), Damages Calculation
Civil Procedure Professional Negligence Costs Costs Assessment Interest on Judgment Permission to Appeal Alternative Dispute Resolution (adr) Damages Calculation

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Parties

Paul Richards

Claimant

Keith Purves

Claimant

Speechly Bircham LLP

Defendant

Charles Russell Speechlys LLP

Defendant

Procedural Posture

Commercial Claim / Judgment on Consequential Matters

Legal Issues

  1. 1 Whether costs should be assessed on the indemnity or standard basis due to refusal to mediate
  2. 2 Appropriate payment on account of costs
  3. 3 Proper rate and accrual date for pre-judgment interest

Ratio Decidendi

The Defendants' refusal to mediate was unreasonable but did not justify indemnity costs; costs are awarded to the Claimants on the standard basis. A payment on account of £713,000 including VAT is reasonable. Pre-judgment interest is set at 2% above base rate from 1 December 2015. Permission to appeal is refused for both parties as their proposed grounds have no real prospect of success. Each party bears its own costs for the consequential matters judgment.

Court Disposition

Claimants awarded costs on the standard basis; payment on account of costs ordered; pre-judgment interest set; permission to appeal refused for both parties; no order as to costs of consequential matters judgment.

Orders

  • Defendants to pay Claimants' costs down to and including trial on the standard basis.
  • Defendants to pay £713,000 (including VAT) on account of costs to Claimants.