Light On Line Ltd & Anor v Zumtobel Lighting Ltd [2012] EWHC 3376 (QB) (29 November 2012)

Light On Line Ltd & Anor v Zumtobel Lighting Ltd [2012] EWHC 3376 (QB) (29 November 2012)

The redacted ATE insurance certificate, showing only the premium paid, complied with CPD 32.5(2)(c) as only the amount paid or payable at the relevant stage needed to be disclosed. The Master erred in requiring disclosure of all staged premiums. However, the certificate was served late, constituting a breach. The Master's refusal to grant relief from sanctions was based on erroneous premises and could not stand. The reduction of solicitors' and counsel's success fees was within the Master's discretion, reflecting a reasonable assessment of risk and the differences in risk between solicitors and counsel.

Citation
[2012] EWHC 3376
Parties
Claimant: Light on Line Limited; Claimant: Project Management Lighting Limited; Defendant: Zumtobel Lighting Limited
Jurisdiction
England and Wales
Judgment Date
29 November 2012
Procedural Posture
Costs Appeal / Appeal From Detailed Assessment Decisions
Outcome
Appeal allowed in part; Master's decisions on ATE premium and relief from sanctions set aside; decisions on success fees upheld.
Legal Topics
After the Event (ate) Insurance, Conditional Fee Agreements (cfa), Relief From Sanctions, Success Fees, Detailed Assessment of Costs
Civil Procedure Costs After the Event (ate) Insurance Conditional Fee Agreements (cfa) Relief From Sanctions Success Fees Detailed Assessment of Costs

Case Brief

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Parties

Light on Line Limited

Claimant

Project Management Lighting Limited

Claimant

Zumtobel Lighting Limited

Defendant

Procedural Posture

Costs Appeal / Appeal From Detailed Assessment Decisions

Legal Issues

  1. 1 Whether a redacted ATE insurance certificate complies with CPD 32.5(2)(c)
  2. 2 Whether relief from sanctions should be granted for late service of the insurance certificate
  3. 3 Whether the Master's reduction of solicitors' and counsel's success fees was justified

Ratio Decidendi

The redacted ATE insurance certificate, showing only the premium paid, complied with CPD 32.5(2)(c) as only the amount paid or payable at the relevant stage needed to be disclosed. The Master erred in requiring disclosure of all staged premiums. However, the certificate was served late, constituting a breach. The Master's refusal to grant relief from sanctions was based on erroneous premises and could not stand. The reduction of solicitors' and counsel's success fees was within the Master's discretion, reflecting a reasonable assessment of risk and the differences in risk between solicitors and counsel.

Court Disposition

Appeal allowed in part; Master's decisions on ATE premium and relief from sanctions set aside; decisions on success fees upheld.

Orders

  • The disallowance of the ATE insurance premium is set aside; the Claimants are entitled to recover the premium.
  • The reduction of solicitors' success fee to 40% and counsel's to 20% is upheld.