Costs spiral in £265 dispute

Three Court of Appeal judges have criticised a case involving a dispute over £265, which cost more than £100,000 in lawyer’s fees. Peakman v Linbrooke Services Ltd [2008] EWCA Civ 1239, was heard over just eight days.

The court awarded the claimant David Peakman, a self-employed cable jointer, £1,145, which was less than he was claiming, and the defendant Linbrooke Services, a telecommunications company, £1,410 plus interest. The judgments were to be satisfied by the payment of £265 plus interest by Peakman to Linbrooke.

However, Peakman sought to appeal against the judge’s decision to make no order of costs.

Permission to appeal was granted. While the court would be reluctant to involve itself in the order for costs, it was arguable that an injustice had been done to Peakman.

In his judgment, Lord Justice Goldring says: “Relative to the sums involved the costs are enormous. Linbrooke’s costs below were estimated to be £32,700 before the costs of an eight day trial. Mr. Peakman’s costs were some £18,000. According to the Statement of Costs supplied to this court Mr Peakman’s costs of his appeal (taking into account the uplift on a conditional fee agreement) amount to £30,481.80.

“This is deeply troubling, not only for this case but as a reflection of the least satisfactory aspect of our civil justice system.”