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03 January 2008 / Virginia Rylatt
Issue: 7302 / Categories: Features , Legal services , Procedure & practice , Profession
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All Change

MasterCigars has ushered in a new costs regime. Virginia Rylatt explains why

In MasterCigars Direct Ltd v Withers LLP [2007] EWHC 2733 (Ch), [2007] All ER (D) 385 (Nov) Mr Justice Morgan found for Withers in a landmark case that reassesses the effect of estimates, caps, margins and the Solicitors’ Costs Information and Client Care Code 1999. Given its importance, a full explanation of the facts of the case is given below.

On 6 May 2005, Withers wrote to MasterCigars Direct Ltd (MCD) giving an estimate of costs from 6 May 2005 to the end of the anticipated four-day trial which was due to start on 7 July 2005. The letter explained that:

 

“Although the figures are becoming relatively fearsome, it has to be said that the potential fees that might be added by bringing in Geoffrey Hobbs [barrister and QC at

One Essex Court
] are a heavy burden. However, they are guesstimates only in that we cannot ask his clerk for an estimate since they do

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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
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
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