Wigg & Co - costs capping and guideline rates

See Various Ledward Claimants v Kent & Medway Health Authority & East Kent Hospitals NHS Trust (2003) EWHC (2001) QD. Group litigation order had been made, the parties agreed that there was a need for costs cap on the generic case and the 8 lead cases which would be in respect of the base costs only and not taking into account any CFA success fee. The Claimants' costs at the end of the trial were capped. Grade A hours at £150.00, Grade B hours at £135.00 and Grade D hours at £85.00 with Leading Counsel at £250.00 per hour, 75 hours of pre-trial work and a Brief fee of £50,000.00 and refreshers of £1750.00 per day. Junior Counsel's fees were allowed at half these amounts. 

Costs Capping

See Smart v East Cheshire NHS Trust (2003) EWHC 2806 in which it was recognised that the cost cap is not of universal application. The judgment was that the Court should only consider making a costs cap order in such cases where the Applicant showed by evidence that there was a real and substantial risk that without such an order costs would be disproportionately or unreasonably incurred and that this risk may not be managed by conventional case management and a detailed assessment of costs after a trial and that it is just to make an order. District Judge Lethan is a pioneer of costs capping and in the Tonbridge County Court said that it was not in his experience that the approach contemplated in Smart would be required. For example, in his own case of Laybourne v Mills, a fast track case, he was faced at the allocation stage with a costs estimate of £22,000.00 to recover £13,000.00. Could it really be right that in these circumstances a Court should sit idly by? Equally, this use of proportionality might be highly irrelevant in lower level multi track trials. He considered that a case can be made out for such control on all major and significant litigation. Generally the costs estimate found in or attached to the allocation questionnaire will suggest whether or not the case is one where the Court ought to consider a costs capping order.

Costs Capping in CFA Liable Cases

King v Telegraph Group Limited CA TLR 21 May 2004. 

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