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

Kingsley Napley—Claire Green

Kingsley Napley—Claire Green

Firm announces appointment of chief legal officer

Weightmans—Emma Eccles & Mark Woodall

Weightmans—Emma Eccles & Mark Woodall

Firm bolsters Manchester insurance practice with double partner appointment

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
back-to-top-scroll