CHANCERY DIVISION
Fetter Lane, London EC4A 1NL |
||
B e f o r e :
____________________
KINGSLEY | Appellant | |
- and - | ||
ORBAN | Respondent |
____________________
8th Floor, 165 Fleet Street, London, EC4A 2DY
Tel No: 020 7421 4036 Fax No: 020 7404 1424
Web: www.merrillcorp.com/mls Email: courtcontracts@merrillcorp.com
(Official Shorthand Writers to the Court)
MR M. WILLIAMS (of W Davies Solicitors) appeared for the Respondent
____________________
Crown Copyright ©
"[Mr Kingsley] then sought to badger me into providing a formal undertaking that I respond to his letter of 2nd July. I was simply not prepared to. I said I would deal with the issues in dispute (which is not quite the same thing), but I made it clear I was not undertaking to address the issues raised in his letter. I was simply not prepared to be tied up with the withdrawal of the demand as being conditional in any way, and was not prepared to undertake to deal with something that was not within my full control or remit."
"During this increasingly difficult conversation the respondent [Mr Kingsley] eventually said he would withdraw the demand. I said I wanted this confirmed in writing and made it expressly clear that I would continue with the preparation of the application to set aside until such time as the confirmation had been received."
"I refer to our telephone conversation just now, in which you indicated you would withdraw the demand.
As discussed, you need to confirm that the demand is withdrawn in writing. An email is sufficient. Until such time as this is received, the application to set aside will continue to be made due to the short period of time remaining. We will look to you for these costs, as we gave you until 4pm yesterday to withdraw the demand."
Mr Kingsley did not reply by email as Mr Williams had invited him to, but sent a letter dated 4 July which he put in the DX, which reads as follows: "Referring to our telephone conversation this morning at 10:17am, I confirm in writing, as requested, I will withdraw the statutory demand and look forward to you dealing with the issues raised in our respective letters in accordance with your and Mr Williams's undertaking."
"We now have your letter of 4 July. As we had not received written notice yesterday, and as discussed we proceeded with the application to set aside as warned. That was lodged this morning at court prior to the writer being in receipt of your letter. As warned we will seek to recover our costs in respect of this given your failure to withdraw the demand in writing following our letter of 1 July and our conversation last week on 28 June by 4pm on 3 July."
It then took issue with the suggestion that Mr Williams had given an undertaking to deal with the matters raised in the letter, saying "we confirm we are dealing with the dispute on behalf of our client but we did not undertake to do so".
"The merit issue is this: was Mr Williams over-hasty in issuing his application, given that Mr Kingsley had said on the telephone that he was going to withdraw? I find that Mr Williams was not over-hasty. These applications are brought under great pressure of deadlines and time limits. A prudent solicitor always has to have these in mind. Mr Williams has said, and I entirely accept, that he was not free to deal with this business on Monday 8th July 2013. Neither was his client. The only day when he could make the application was on Friday 5th July 2013. This, in my view, is a sign of a prudent and conscientious solicitor who, when faced with a deadline allows himself at least one day's grace rather than get into arguments as to whether or not deadlines have been observed."
"(4) The statement of costs must be filed at court and copies of it must be served on any party against whom an order for payment of those costs is intended to be sought as soon as possible and in any event –
(a) for a fast track trial, not less than 2 days before the trial; and
(b) for all other hearings, not less than 24 hours before the time fixed for the hearing.
9.6
The failure by a party, without reasonable excuse, to comply with paragraph 9.5 will be taken into account by the court in deciding what order to make about the costs of the claim, hearing or application, and about the costs of any further hearing or detailed assessment hearing that may be necessary as a result of that failure."
"Where there is a failure to comply with the Practice Direction and a schedule of costs is not served more than 24 hours before the hearing, the court should take that into account but its reaction should be proportionate."
"The only issue is one of our costs as explained previously. We are prepared to limit our costs to be met by you in the sum of £500 plus VAT, obviously if you are not able to agree this and a hearing is necessary, the level of costs we seek will be more. This offer on costs is open to 8th August.
We will prepare and file a witness statement in respect of costs after 8th August for use at the hearing, and accordingly our costs (to which we will look to you for) will increase beyond this point."
"We have made an offer. I am a grade A solicitor, with a usual charge-out rate of £230 plus VAT. The offer on costs at £500 plus VAT (and it is not all my costs and does not represent all my time incurred in respect of this matter) is reasonable even taking into account the hourly rate usually allowable in Kingston on an inter partes basis.
It is not cost effective for us to become embroiled in endless correspondence on the issue, and unless our offer is accepted we will incur additional costs as warned in our letter of 24 July 2013 in respect of any adjourned hearing."
"Where there is a mere failure to comply, and that is a failure to comply without aggravating factors, it seems to me that the first question for the court should be: what, if any, prejudice has that failure to comply caused to the other party? If no prejudice, then the court should go on and assess the costs in the normal way. If satisfied it has caused prejudice, the next question is: how should that prejudice best be dealt with?"