QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
SITTING WITH MASTER LEONARD AS ASSESSOR
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TUI UK LTD |
Defendant |
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TICKELL & OTHERS |
Claimants |
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Mr Roger Mallalieu (instructed by Irwin Mitchell) for the Claimants
Hearing dates: 17 October 2016
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Crown Copyright ©
Mrs Justice Elisabeth Laing DBE:
Introduction
The legal approach
Where there is a finding that costs are disproportionate
"…There has to be a global approach and an item by item approach. The global approach will indicate whether the total sum claimed is or appears to be disproportionate having particular regard to the considerations which CPR r 44.5(3) states are relevant. If the costs as a whole are not disproportionate according to that test then all that is normally required is that each item should have been reasonably incurred and the cost for that item should be reasonable. If on the other hand the costs as a whole appear disproportionate then the court will want to be satisfied that the work in relation to each item was necessary...."
"… a sensible standard of necessity has to be adopted. This is a standard which takes fully into account the need to make allowances for the different judgments which those responsible for litigation can sensibly come to as to what is required. While the threshold required to meet necessity is higher than that of reasonableness, it is still a standard that a competent practitioner should be able to achieve without undue difficulty."
"It does not seem to us to be a profitable or useful exercise for this court to describe in abstract the difference between assessing whether an item has been necessarily incurred and assessing whether an item has been reasonably incurred, save to confirm that the former hurdle is higher, but it does not carry with it the strictest sense of necessity."
The approach to appeals on costs
The grounds of appeal
i) the quality only claims settled for low figures,
ii) their quantum was agreed in principle on 23 May 2012,
iii) the quantum of 173 of the claims was agreed from the start on the basis of a set tariff,
iv) 173 of the claims settled for less than £1500,
v) there were available ADR processes, but the solicitors, in breach of their duties to their clients, did not advise the Claimants about them,
vi) all the cases except the lead cases were parked by the order of 23 May 2012 so
vii) there was no need for any substantial costs or any such costs post-23 May 2012 in respect of individual bills for non-lead Claimants with quality only or upset stomach claims.
Inter-fee earner discussions
ADR
Ground 2: unnecessary costs?
Ground 4: Bullen
Conclusion