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23 April 2009
Issue: 7366 / Categories: Legal News , Costs
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20% drop in Mastercigars costs

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
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MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
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