ST v ZY [2022] EWHC B6 (Costs) (21 February 2022)

ST v ZY [2022] EWHC B6 (Costs) (21 February 2022)

There was an enforceable retainer between ST (on behalf of C) and Irwin Mitchell LLP for C's dependency claim. However, the bill included costs outside the scope of the retainer, specifically costs relating to discontinued claims. Costs exceeding the approved budget and CPR 3.15(5) caps were unusual in amount and, as IM did not inform ST that these costs might not be recovered due to their unusual amount, such costs are presumed unreasonably incurred under CPR 46.9(3)(c). The court approved the settlement of costs between the parties but required a detailed assessment of costs payable by C to IM, with attention to excluding costs outside the retainer's scope.

Citation
[2022] EWHC B6 (Costs)
Parties
Claimant: ST; Defendant: ZY
Jurisdiction
England and Wales
Judgment Date
21 February 2022
Procedural Posture
Costs Assessment Following Settlement in Fatal Accident Dependency Claim / Detailed Assessment of Costs; Approval of Settlement Between Parties; Preliminary Issues Judgment
Outcome
Settlement of costs between parties approved; detailed assessment of costs payable by C to IM required.
Legal Topics
Enforceability of Retainer, Scope of Retainer, Costs Budgeting, Costs Assessment for Children, Shortfall Recovery From Damages, Conditional Fee Agreements, CPR 46.4, CPR 3.15(5), CPR 46.9(3)(c)
Civil Procedure Costs Law Enforceability of Retainer Scope of Retainer Costs Budgeting Costs Assessment for Children Shortfall Recovery From Damages Conditional Fee Agreements +3 more

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Parties

ST

Claimant

ZY

Defendant

Procedural Posture

Costs Assessment Following Settlement in Fatal Accident Dependency Claim / Detailed Assessment of Costs; Approval of Settlement Between Parties; Preliminary Issues Judgment

Legal Issues

  1. 1 Whether there is an enforceable retainer between ST (on behalf of C) and Irwin Mitchell LLP
  2. 2 Whether the bill contains costs outside the scope of the retainer
  3. 3 Whether costs exceeding the budget or CPR 3.15(5) caps are presumed unreasonably incurred under CPR 46.9(3)(c)

Ratio Decidendi

There was an enforceable retainer between ST (on behalf of C) and Irwin Mitchell LLP for C's dependency claim. However, the bill included costs outside the scope of the retainer, specifically costs relating to discontinued claims. Costs exceeding the approved budget and CPR 3.15(5) caps were unusual in amount and, as IM did not inform ST that these costs might not be recovered due to their unusual amount, such costs are presumed unreasonably incurred under CPR 46.9(3)(c). The court approved the settlement of costs between the parties but required a detailed assessment of costs payable by C to IM, with attention to excluding costs outside the retainer's scope.

Court Disposition

Settlement of costs between parties approved; detailed assessment of costs payable by C to IM required.

Orders

  • Settlement of £132,000 (inclusive of interest and assessment costs) approved as reasonable from C's perspective.
  • Detailed assessment to determine which costs are payable by C, excluding costs outside the scope of the retainer.