Bailey v IBC Vehicles Ltd

JurisdictionEngland & Wales
Judgment Date27 March 1998
Date27 March 1998
CourtCourt of Appeal (Civil Division)
Bailey
and
IBC Vehicles Ltd

Before Lord Justice Butler-Sloss, Lord Justice Henry and Lord Justice Judge

Court of Appeal

Costs - hourly rate - avoiding unnecessarily adding to litigation costs

Hourly rate should be set out

Where a solicitor sent a letter to a client confirming instructions, the hourly rate claimed in taxation should coincide with the terms of the letter, a copy of which should normally be attached to the bill of costs to avoid skirmishes which unnecessarily added to the costs of litigation.

The Court of Appeal so stated in a reserved judgment when dismissing an appeal brought by the defendants, IBC Vehicles Ltd, against the decision of Judge Cooke on October 17, 1997 at Luton County Court to allow IBC's appeal against the order of District Judge Richardson on September 22, 1997 ordering the plaintiff, Trevor Raymond Bailey, to give discovery of documents to prove his costs.

Mr Richard Barraclough for the defendants; Miss Cherie Booth, QC and Mr Jeremy Morgan for the plaintiff.

LORD JUSTICE JUDGE said that the plaintiff was employed by the defendants as a production operator at their factory in Luton. In July 1993, in the course of his employment, he suffered personal injuries.

He consulted his union, the Amalgamated Engineering and Electrical Union. It was decided that his claim should be supported from union funds.

Accordingly, proceedings were begun against the defendants by union solicitors, Rowley Ashworth. Eventually, before trial the claim was settled by the defendants agreeing to pay damages plus costs on scale 2 to be taxed.

Rowley Ashworth prepared their bill of costs which included a charge of £80 an hour during 1994/95 and £90 for 1996/97 with a mark up of 66.7 per cent. The defendants objected and requested the plaintiff to provide evidence to show that it was not breaching the indemnity principle.

District Judge Richardson in effect supported the defendants' contention. He was reversed by Judge Cooke.

The defendants submitted that since they were not liable to pay any item of costs which were inconsistent with the indemnity principle they were entitled to call for, and be provided with information about any agreement or understanding about the costs...

To continue reading

Request your trial
42 cases
  • Hollins v Russell; Tichband v Hurdman; Dunn v Ward; Pratt v Bull; Worth v McKenna; Sharratt v London Central Bus Company Ltd and two other cases
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 20 Mayo 2004
    ...49–50). Parts 3 and 4 contain the main substance of the judgment. In Part 3 (paras 51–67) the court distinguishes the case of Bailey v IBC Vehicles Ltd [1998] 3 All ER 570 and makes it clear that in future when a receiving party relies on a CFA (with or without a success fee) the costs judg......
  • South Coast Shipping Company Ltd v Havant Borough Council
    • United Kingdom
    • Chancery Division
    • Invalid date
  • Liebaers v Smith
    • Cayman Islands
    • Grand Court (Cayman Islands)
    • 30 Abril 2008
    ...v. London Improved Motor Coach Builders Ltd., [1921] 1 K.B. 495; [1920] All E.R. Rep. 340, followed. (2) Bailey v. IBC Vehicles Ltd., [1998] 3 All E.R. 570; [1998] 2 Costs L.R. 46; (1998), 142 Sol. Jo. (L.B.) 126, applied. (3) Callery v. Gray (No. 2), [2001] 1 W.L.R. 2142; [2001] 4 All E.R.......
  • Garbutt v Edwards
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 27 Octubre 2005
    ...is reason to think otherwise, and thus will not seek to go behind the certificate. The effect of the certificate was considered in Bailey v IBC Vehicles Ltd [1998] 3 All ER 570, which was in turn considered in Hollins v Russell: "[59] Indeed, when the bill of costs is served, it is required......
  • Request a trial to view additional results
8 books & journal articles
  • Book Review: The Modern Cy-près Doctrine: Applications and Implications By Rachael P. Mulheron (2006)
    • Canada
    • Irwin Books The Canadian Class Action Review No. 4-1, July 2007
    • 1 Julio 2007
    ...123 Garbutt, ibid. at para. 7, quoting Hollins, ibid. at paras. 59–62. See also Bailey v. IBC Vehicles Ltd, [1998] EWCA Civ 566, [1998] 3 All E.R. 570 at 572–73 and 575 (quoted in Hollins, ibid. at paras. 59–62); Supreme Court Costs Office, ibid. at [2.6]. 124 Campbell v. MGN Ltd., [2005] U......
  • Introduction
    • Canada
    • Irwin Books The Canadian Class Action Review No. 4-1, July 2007
    • 1 Julio 2007
    ...123 Garbutt, ibid. at para. 7, quoting Hollins, ibid. at paras. 59–62. See also Bailey v. IBC Vehicles Ltd, [1998] EWCA Civ 566, [1998] 3 All E.R. 570 at 572–73 and 575 (quoted in Hollins, ibid. at paras. 59–62); Supreme Court Costs Office, ibid. at [2.6]. 124 Campbell v. MGN Ltd., [2005] U......
  • Multiple Defendant Class Actions in Quebec: Recent Developments in the Jurisprudence
    • Canada
    • Irwin Books The Canadian Class Action Review No. 4-1, July 2007
    • 1 Julio 2007
    ...123 Garbutt, ibid. at para. 7, quoting Hollins, ibid. at paras. 59–62. See also Bailey v. IBC Vehicles Ltd, [1998] EWCA Civ 566, [1998] 3 All E.R. 570 at 572–73 and 575 (quoted in Hollins, ibid. at paras. 59–62); Supreme Court Costs Office, ibid. at [2.6]. 124 Campbell v. MGN Ltd., [2005] U......
  • Rethinking the Approval of Class Counsel's Fees in Ontario Class Actions
    • Canada
    • Irwin Books The Canadian Class Action Review No. 4-1, July 2007
    • 1 Julio 2007
    ...123 Garbutt, ibid. at para. 7, quoting Hollins, ibid. at paras. 59–62. See also Bailey v. IBC Vehicles Ltd, [1998] EWCA Civ 566, [1998] 3 All E.R. 570 at 572–73 and 575 (quoted in Hollins, ibid. at paras. 59–62); Supreme Court Costs Office, ibid. at [2.6]. 124 Campbell v. MGN Ltd., [2005] U......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT