Bailey v IBC Vehicles Ltd
Jurisdiction | England & Wales |
Judgment Date | 27 March 1998 |
Date | 27 March 1998 |
Court | Court of Appeal (Civil Division) |
Before Lord Justice Butler-Sloss, Lord Justice Henry and Lord Justice Judge
Court of Appeal
Costs - hourly rate - avoiding unnecessarily adding to litigation costs
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...
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