News in brief – 06.01.2022

New issue of Costs Lawyer now available

A reminder that the latest issue of Costs Lawyer magazine is now available for members to read. The issue contains comprehensive coverage of November’s ACL conference, as well as features on cyber-insurance, properly certifying bills of costs, the costs of assessment, CFA Lites and terminating CFAs.

You can read and download the issue here.


Costs of £64,000 reasonable in £3,000 claim, judge rules

Costs of £64,000 were reasonable and proportionate in pursuing a claim where £2,850 was awarded, the High Court has ruled.

His Honour Judge Pearce, sitting as a High Court judge in Manchester in Hodgson v Creation Consumer Finance [2021] EWHC 3515 (Comm), said the court was asked to provide guidance on broader issues of principle raised in the case – such as issues as to the measure of performance of solar panels and the calculation of future losses – that was likely to assist in other cases.

The claimant sought relief under the Consumer Credit Act 1974 for the alleged misrepresentation of a supplier who sold him solar panels as to their performance. Last summer, HHJ Pearce found for him in a case run under the capped costs pilot and as a result dealt with the costs summarily on the papers.

The judge said a “particular feature” of this type of litigation was that claims were of relatively low value, such that costs would “quickly become disproportionate”. But his ruling had also provided guidance on the assessment of quantum which would be “likely to assist in the resolution of other disputes at proportionate costs”.

He went on: “It follows from the low value of this case but its importance of this case to other potential cases, that the costs that are reasonable and proportionate are likely to bear little relationship to the value of the case.

“For example, given the potential impact on the judgment in the resolution of other cases, both parties instructed silks in this case. This was reasonable.”

The claimant sought costs of £89,000 – despite the £80,000 limit in the capped costs pilot – and the master awarded £64,000 including VAT.


MoJ consults over costs of CAAD appeals

The Ministry of Justice is consulting on a potential change to rule 10(6) of the Tribunal Procedure (Upper Tribunal) (Lands Chamber) Rules 2010 which would add so-called CAAD appeals under the Land Compensation Act 1961 to the list of proceedings in which the Upper Tribunal has power to award costs. The consultation closes on 8 February.

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Costs News
Published date
06 Jan 2022

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