Dranez & Ors v Hayek & Ors

Dranez & Ors v Hayek & Ors

The retainer letter fixed the hourly rates at £350 for partners and £150 for assistants, with no provision for increases. There was no evidence of explicit or informed consent by Dr Hayek to any increase in rates. The receiving parties are contractually capped at those rates for all work done, except for one instance where a lower rate was claimed and allowed.

Parties
Claimant: Dranez Anstalt; Claimant: Dranez Holdings AG; Claimant: Flexco Medical Instruments AG; Claimant: Breasy Medical Equipment Limited; Claimant: Raphi Berber; Claimant: Kilroy Holdings SA; Claimant: Dorley Investment Limited; Claimant: Charenton Limited; Defendant: Zamir Hayek; Defendant: Medivent Limited; Defendant: Kay Teresa De Bernardo; Defendant: Andrew Higgs; Respondent (for the Purpose of Costs Only): Samuel Hayek
Jurisdiction
England and Wales
Judgment Date
28 April 2008
Procedural Posture
Costs Assessment (high Court, Uk) / Preliminary Issue Judgment on Recoverable Hourly Rates
Outcome
Receiving parties' recoverable hourly rates capped at £350 for partners and £150 for assistants as per retainer letter; no recovery of higher rates allowed.
Legal Topics
Solicitor Client Retainer, Hourly Rates, Indemnity Principle, Variation of Contract, Costs Assessment
Civil Procedure Costs Law Solicitor Client Retainer Hourly Rates Indemnity Principle Variation of Contract Costs Assessment

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Parties

Dranez Anstalt

Claimant

Dranez Holdings AG

Claimant

Flexco Medical Instruments AG

Claimant

Breasy Medical Equipment Limited

Claimant

Raphi Berber

Claimant

Kilroy Holdings SA

Claimant

Dorley Investment Limited

Claimant

Charenton Limited

Claimant

Zamir Hayek

Defendant

Medivent Limited

Defendant

Kay Teresa De Bernardo

Defendant

Andrew Higgs

Defendant

Samuel Hayek

Respondent (for the Purpose of Costs Only)

Procedural Posture

Costs Assessment (high Court, Uk) / Preliminary Issue Judgment on Recoverable Hourly Rates

Legal Issues

  1. 1 Whether there is a contractual cap on the hourly rates recoverable by the receiving parties
  2. 2 Whether the retainer was varied to allow for increased rates
  3. 3 What hourly rates are reasonable and recoverable

Ratio Decidendi

The retainer letter fixed the hourly rates at £350 for partners and £150 for assistants, with no provision for increases. There was no evidence of explicit or informed consent by Dr Hayek to any increase in rates. The receiving parties are contractually capped at those rates for all work done, except for one instance where a lower rate was claimed and allowed.

Court Disposition

Receiving parties' recoverable hourly rates capped at £350 for partners and £150 for assistants as per retainer letter; no recovery of higher rates allowed.

Orders

  • Hourly rates for partners capped at £350 per hour.
  • Hourly rates for all fee earners below partner level capped at £150 per hour.