header-logo header-logo

20% drop in Mastercigars costs

23 April 2009
Issue: 7366 / Categories: Legal News , Costs
printer mail-detail

Courts not there to punish solicitors for providing a wrong estimate

The High Court has set aside an order capping costs to 20% above the solicitor’s estimate, in an important case on costs.

In Mastercigars v Withers [2009] EWHC 651 (Ch), [2009] All ER (D) 316 (Mar) the defendant law firm, Withers, had billed its client, Mastercigars, for more than £1m for its work in a trademark dispute. Mastercigars sought a ruling that the firm was bound by its earlier costs estimate of only £265,570.

The claimant obtained an order under s 70 of the Solicitors Act 1974, for an assessment of 16 out of 21 bills amounting to a total of about £1.1m. Withers had estimated the trial would last for four days, but in fact it lasted 15 days. Mastercigars conceded that more work had been done than originally anticipated, but claimed that they themselves had carried out most of this work.

The costs judge ruled that Withers was largely bound by its original estimate plus a “margin” of 20%. On appeal to the High Court, however, Mr Justice Morgan said: “The figure of 20% has all the appearance of being arbitrary rather than calculated.”

Morgan J stated, in his judgment: “The court should decide whether the costs claimed should be reduced by reason of its findings as to reliance and, if so, in what way and by how much. Whether there should be a reduction, and if so to what extent, is a matter of judgment...It is not the proper function of the court to punish the solicitor for providing a wrong estimate or for failing to keep it up to date as events unfolded.”

Issue: 7366 / Categories: Legal News , Costs
printer mail-details

MOVERS & SHAKERS

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
A Competition Appeal Tribunal (CAT) ruling has reopened debate on the availability of ‘user damages’ in competition claims. Writing in NLJ this week, Edward Nyman of Hausfeld explains how the CAT allowed Dr Liza Lovdahl Gormsen’s alternative damages case against Meta to proceed, rejecting arguments that such damages are barred in competition law
The next generation is inheriting more than assets—it is inheriting complexity. Writing in NLJ this week, experts from Penningtons Manches Cooper chart how global mobility, blended families and evolving values are reshaping private wealth advice
back-to-top-scroll