header-logo header-logo

23 June 2016 / Dominic Regan
Issue: 7704 / Categories: Opinion , Costs , Budgeting
printer mail-detail

Costs turbulence

nlj_7704_regan

Proportionality was always going to be a problem, says Dominic Regan

Mitchell was unquestionably the harshest procedural decision of the century. Well it was until now. In BNM V MGN [2016] EWHC B13 the senior costs judge found himself in the wrong place at the wrong time. He was obliged to apply the new, inchoate proportionality test to a bill of costs.

Having carefully worked through the component parts of the bill he arrived at a figure that represented the necessary, reasonable expenditure incurred by the claimant to whom we will return later.

However, matters did not end there. He concluded his decision by rolling out the proportionality test which is both enshrined in the costs rules and the overriding objective. The latter at the Jackson revised CPR 1.1 requires the court to deal with cases justly and at proportionate cost.

Applying some innate skill he then proceeded to slash the entire bill by 50%, although allowing court fees in full.

Proportionality

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Flint Bishop—Charlotte Harris

Flint Bishop—Charlotte Harris

Sheffield expansion continues with appointment of commercial property partner

Browne Jacobson—Paul Duggan

Browne Jacobson—Paul Duggan

Browne Jacobson strengthens banking and finance practice with latest partner appointment Paul Duggan

Ward Hadaway—Chris Piggott

Ward Hadaway—Chris Piggott

Employment partner joins Ward Hadaway

NEWS
Mr Justice Nicklin’s decision to order costs on an indemnity basis may be a ‘significant win’ but it’s still ‘far from game, set and match’ for Associated Newspapers, a former costs judge has said
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
Can a meticulously maintained spreadsheet turn a couple’s informal financial arrangements into legally enforceable obligations? 
back-to-top-scroll