header-logo header-logo

Good news for costs claimants

22 February 2012
Issue: 7502 / Categories: Legal News
printer mail-detail

Costs run from date of costs order where claimant is CFA-funded

Costs run from the date of the costs order even where the claimant is funded by a conditional fee agreement (CFA) and not from the date the sum is formally agreed, the Court of Appeal ruled last week.

In Simcoe v Jacuzzi UK Group Plc [2012] EWCA Civ 137, the parties were divided over the question of the date from which interest on costs should run on an award of costs to the claimant, and whether the fact the claimant was funded by a CFA gave the judge reason to order otherwise.

The defendant argued that interest should run from the later date on which the sum of the costs was formally agreed.

The court held in favour of the claimants, finding that part of CPR 40.8 is ultra vires in the county court and, until that discrepancy is resolved, a judge in the county court has no discretion to order otherwise. In the county court and the High Court, interest runs from the date of the costs order.
The court also held that the fact the claimant is on a CFA and is therefore not out-of-pocket as a result of the case is not a good reason to order otherwise.

Writing in the March issue of the Civil Costs Newsletter, Roger Mallalieu of 4 New Square, who represented the claimant, says: “The judgment will be good news for claimant solicitors.

“Interest has long provided an annual source of income and has been part of the calculations on which many financial models have been based. In these straitened times, where solicitors acting on CFAs are already facing many changes and strains on their business models, it would have been sorely missed.”

Lord Neuberger, Master of the Rolls, concluded his judgment by criticising the fact it costs the claimant nearly £75,000 to pursue a “relatively minor and straightforward” personal injury case for £12,750 damages.

“Unless this is an exceptional case, the fact that, without even incurring the cost of a trial, it cost the claimant nearly six times as much to pursue the claim as it was actually worth suggests that something is out of kilter in at least some parts of the civil justice system,” he said.

Simcoe was the appeal against Judge Stewart QC’s judgment in Gray v Toner at Liverpool County Court in November 2010.

Issue: 7502 / Categories: Legal News
printer mail-details

MOVERS & SHAKERS

Druces LLP—Daniel Lloyd

Druces LLP—Daniel Lloyd

Corporate and commercial team welcomes technology specialist as partner

Birketts—Michael Conway

Birketts—Michael Conway

IP partner joins team in Bristol to lead branding and trade marks practice

Spector Constant & Williams—Anna Christou

Spector Constant & Williams—Anna Christou

Real estate finance practice announces partner appointment

NEWS
The extension of fixed recoverable costs (FRC) from low-value personal injury to most civil cases worth up to £100,000 ‘is failing to deliver what it promised’, the Law Society has warned
Bar campaigns will focus on protecting juries, legal aid and children’s rights in the year ahead with a working group already looking into the age of criminal responsibility, chair Kirsty Brimelow KC has said
Richard Orpin has been appointed chief executive officer (CEO) of the Legal Services Board (LSB), which oversees all nine legal regulators
Workers will be given day-one rights to parental leave in April, the government has confirmed
Lord Sales has become deputy president, and Lord Doherty a justice, at the Supreme Court. Both were sworn in this week at a ceremony conducted by the court’s president Lord Reed in Courtroom One
back-to-top-scroll