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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Higgs v Camden & Islington Health Authority [2003] EWHC 15 (QB) (16 January 2003) URL: http://www.bailii.org/ew/cases/EWHC/QB/2003/15.html Cite as: [2003] EWHC 15 (QB) |
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QUEENS BENCH DIVISION
ON APPEAL FROM COSTS JUDGE ROGERS
Strand. London, WC2A 2LL |
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B e f o r e :
sitting with Costs Judge CAMPBELL
and
Mr Michael HOWELLS, Solicitor
____________________
LEO ROLAND HIGGS (a child suing by his mother and Claimant | ||
Litigation Friend, MARCIA HIGGS | ||
and - | ||
CAMDEN & ISLINGTON HEALTH AUTHORITY Defendant |
____________________
Defendant/Appellants
Ms Caroline Neenan (instructed by Leigh Day & Co) for the Claimant/Respondents
Hearing dates : 3rd December 2002
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Crown Copyright ©
Mr Justice Fulford:
Background
i) A 8-10 day trial was fixed on 14th June 2000 to commence on 30th April 2001.
ii) Liability was not admitted until a fax was received at 9.32am on 11th April 2001 (ten working days before trial).
iii) The conference with both leading and junior counsel which had been arranged for that day to deal with liability was reorganised to deal with quantum.
iv) At 3.28pm on the same day a further fax was received notifying the Claimant that a Part 36 offer of £3.5 million plus education costs indemnity had been made.
v) A 15-point plan of action was agreed at conference and considerable detailed work was pursued in order to form a view as to whether the Part 36 offer should be accepted.
vi) A further conference was held on 26th April 2001 to consider the merits of accepting the Part 36 offer,
vii) On Friday 27th April 2001 the offer was accepted.
viii) The infant approval hearing was on the following Monday (30th April 2001), and the Court approved an Order permitting the claimant to accept the payment into court
ix) An Investment Directions Appointment was held on 27th July 2001
a) the allowance of an hourly rate of £300 for the claimant's solicitor (ref AW);
b) the degree of delegation by the Partner;
c) The allowance of an hourly rate of £350 in respect of Leading Counsel.
The Decision of the Costs Judge
a) the Solicitors Hourly Rate
- Miss Anne Winyard, senior partner at an hourly rate of £300
- SC, an assistant solicitor admitted 4 Jan 1999 at an hourly rate of £225
- An in-house nurse/midwife at an hourly rate of £215
- A highly experienced legal executive at an hourly rate of £230
- Trainee solicitor/para-legals at an hourly rate of £150
- comparison with other cases was of limited value
- £150 per hour under the CPR was acceptable for Miss Winyard doing this work in 1999 - 2001
- this was, even within its type, a difficult and complex case
- there were additional pressures relating to the fact that the claimant's parents were both barristers
- it was significant that liability was admitted only three weeks before the trial
and on those bases, and bearing in mind this was a heavy, difficult case which was run expertly by an expert in the field, the case merited payment at the rate of £300 per hour for Miss Winyard's involvement.
b) Delegation
c) Level of Leading Counsel's "Hourly Rate"
Certain Matters of principle
a) the conduct of all the parties, including in particular -
i) conduct before, as well as during, the proceedings; and
ii) the efforts made, if any, before and during the proceedings in order to try to resolve the dispute;
b) the amount or value of any money or property involved;
c) the importance of the matter to all the parties;
d) the particular complexity of the matter or the difficulty or novelty of the questions raised;
e) the skill, effort, specialised knowledge and responsibility involved;
f) the time spent on the case; and
g) the place where and the circumstances in which work or any part of it was done (CPR 44.5(3)).
"Broadly speaking the judge will allow an appeal.. .if satisfied that the decision of the costs judge was wrong: CPR 47.26(2). That is easy to apply to matter of principle or construction. However, where the appeal includes challenges to the details of the assessment, such as hours allowed in respect of a particular item, the task in hand is one of assessment or judgment rather than principle. There is no absolute answer. Notwithstanding that the Judge to whom the appeal is made may sit with Assessors…the appeal is not a re-hearing and given the nature of the Costs Judge's task and his expertise I would usually, regard it as undesirable for it to be so...
But since the appeal is not a re-hearing, I would regard it as inappropriate for the Judge on appeal to be drawn into an exercise calculated to add a little here or knock off a little there. If the Judge's attention is drawn to items which with the advice of his Assessors he feels should, in fairness, be altered, doubtless he will act. That is a matter for his good judgment. Permission to appeal should not be granted simply to allow yet another trawl through the Bill, in the absence of some sensible and significant complaint. If an appeal turns out to be no more than such an exercise the sanction of costs may be used".
The Grounds of Appeal
The Hourly rate of the Partner (AW)
"The general approach to the summary and detailed assessment of costs should be the same. For the summary assessment to be accurate the Judge must be informed about all previous summary assessments carried out in the case. This is particularly important where the Judge is assessing all the costs at the conclusion of the case."
And by paragraph 8 more generally:
"The court should not be seen to be endorsing disproportionate and unreasonable costs."
"In the past solicitors have sought to recover their charges on what is known as the A plus B basis, namely an hourly expense rate (A) and an uplift for care and conduct (B) The CPR and the Costs Practice Direction discourage the use of this method of calculating charges and solicitors are therefore urged to claim costs at a single charging rate, which will normally be the rate which they have agreed to charge their client."
"Guideline figures for solicitors' charges are published in Appendix 2 to this Guide, which also contains some explanatory notes. The guideline rates are not scale figures they are broad approximations only. In any particular area the Designated Civil Judge may, after consultation between District Judges and the local Law Societies, supply more up to date guidelines for rates in that area. Costs and fees exceeding the guidelines may well be justified in an appropriate case and that is a matter for the exercise of discretion by the court."
"The guideline figures are not intended to replace figures used by those with accurate local knowledge. They are intended to provide a starting point for those faced with summary assessment who do not have that local knowledge."
Conclusions on this Issue
i) For the reasons set out by Ms Neenan, I consider that the SCCO guide is of only limited assistance in these circumstances, given in particular that brain damage at birth is a particularly sensitive subject matter for litigation and that the specific demands placed upon solicitors by clients and litigation friends will vary widely from case to case. Further the guideline figures are not supposed to replace the experience and knowledge of those familiar with the local area and the field generally. Accordingly, the Guideline figures are not of great value in this instance. I have reminded myself that it is expressly recognised in the Guide that costs and fees exceeding the guidelines may well be justified in an appropriate case as an exercise of discretion. I further note that the SCCO guide was before the learned Judge, having been provided by Ms Turpin.
ii) Although I accept that it would be undesirable for publicly funded litigants to be treated differently from privately paying parties, I am not persuaded that the claimant's have attempted to charge at a different rate as between those two types of litigants, or to benefit from that kind of distinction.
iii) The CPR and the Cost Practice Direction discourage the use of the A plus B calculation, and commend the claiming of costs on the basis of a single charging rate. I fully accept the advantages that the single hourly rate has for both the paying and the receiving party. However I am not persuaded that the learned Judge did more than use the A plus B method as one of the measures and indictors to ensure that he was able to gauge the propriety or otherwise of a figure of £300 per hour. His decision was based on the submissions made to him; his very full understanding of the case; and his extensive relevant personal knowledge. It was having considered the case in the round that he arrived at his concluding paragraph on this section:
"In conclusion therefore I have no doubt that this was a heavy, difficult case which was run expertly by an expert in the field, and deserved payment at the rate of £300 per hour for her involvement therein."
iv) In those circumstances, I am unable to accept the submission that the learned Judge misdirected himself in considering the A plus B basis. It may well be that reliance on that method of calculation will rapidly diminish, but in this case I consider the learned Judge did not misdirect himself when he took it into consideration.
v) Given that the list of comparative cases was produced at the last moment and was short on detail, I consider that the learned Judge was entitled to conclude that this material was of limited value in this case. In those circumstances, I do not accept the submissions that there was clear and unchallenged evidence before the court as to the rates charged by comparable firms of similar competence.
vi) The learned Judge was at pains to indicate that a client was entitled to expect the same level of service wherever he is placed on the social scale (be he barrister or dustman). However in certain respects, as rehearsed above, the Judge took into account the particular demands of the litigation friend in this case. I accept that this was a valid matter to consider, and that it was accorded appropriate weight.
vii) Although the learned Judge did not use the expression "exceptional" he categorised this case as a heavy, difficult case which was run expertly by an expert in the field, and he clearly acceded to the submissions that this claim was not in any sense run of the mill. It is the overall assessment that matters, rather than the use of particular language.
viii) I further accept that there is no longer a difference to be drawn as regards uplift between routine and non routine work, or between travel and waiting and other kinds of work.
ix) Going through the bill identifying examples of where the work was said to be "routine" was not particularly illuminating in my view. This expression is a reference to the length of time the task took, rather than to its complexity or the degree of expertise that needed to be brought to bear to the problem.
x) In conclusion, although £300 was a high figure, I do not consider, on the material before me, that the learned Judge was wrong at arriving at that hourly rate for Miss Winyard in this particular case.
Delegation
"It seems to me that in a claim which was pitched at £6.1 million and settled for £3.5 million, it was perfectly reasonable for the partner in charge of the case to do the lion's share of the work. The client, whether barrister or dustman, should expect no less, and, of course, sight should not be lost of the fact that where a partner does do the work, it will tend to be done more effectively and more quickly (and perhaps more cheaply) than if it is delegated. Delegation necessarily involves instructing the delegee, and then checking their work after it has been completed, and time is not always saved by that exercise. Having read the papers in some depth I am quite satisfied that there was a proper delegation in this case."
Conclusion on this issue
Counsel's Fees
"A proper measure of Counsel's fees is to estimate that fee a hypothetical counsel, capable of conducting the case effectively, but unable or unwilling to insist on the higher fees sometimes demanded by counsel of pre-eminent reputation would be content to take on the brief: but there is no precise standard of measurement and the judge must, using his or her knowledge and experience, determine the proper figure (Simpson Motor Sales (London) Limited v Hendon Borough Council [1065] 1 WLR 112).
"If it is contended that a lawyer amounts to an unsuitable or "luxury" choice made on grounds other than grounds which would be taken into account by an ordinary reasonable litigant concerned to obtain skilful competent and efficient representation in the type of litigation concerned, in deciding whether such an objection is sustainable in practice, the focus is primarily upon the reasonable interests of the claimant in the litigation so that, in relation to broad categories of costs, such as those generated by the decision to employ a particular status or type of solicitor or counsel, one looks to see whether, having regard to the extent and importance of the litigation to a reasonably minded claimant, a reasonable choice or decision has been made;
If satisfied that the choice is reasonable, the question of what is a reasonable amount to be allowed imports consideration of the appropriate rate or fee for a solicitor or counsel of the status and type retained;
"I consider that £350 is at the top of the range permissible for hourly rates for Silks in this field, but not above the permissible rate, which is why I allow it".
Conclusion on this Issue