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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 >> Royal Devon and Exeter NHS Foundation Trust v Acres [2013] EWHC 652 (QB) (22 March 2013) URL: http://www.bailii.org/ew/cases/EWHC/QB/2013/652.html Cite as: [2013] 3 Costs LR 406, [2013] EWHC 652 (QB) |
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QB/2012/0508 |
QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
(sitting with assessors Master Simons and Peter Todd, Solicitor)
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Royal Devon and Exeter NHS Foundation Trust |
Appellant |
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- and - |
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Margaret Acres |
Defendant/ Cross appellant |
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Mr John Foy QC (instructed by Howard Kennedy Fsi LLP) for the Defendant/Cross Appellant
Hearing dates: 12 March 2013
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Crown Copyright ©
Mr Justice Cranston:
Introduction
Background
Costs and the Master's ruling
"[16] … That is what I propose to do here. I am going to look for other comparable firms outside central London which could deal with it. In that I look at band 1 rates, particularly for Bristol with lots of firms with lots of experience. I ought to take into account the particular expertise a solicitor brings to a particular case … I have done that by taking as my starting point grade A for band 1. I took it at £215 and have applied a multiplier to it. I think the multiplier should be 30 percent. That gives me a figure of £280, and I think that is the rate I ought to come to.
[17] I think it is wrong to assume that all these cases have to come to London because they can only be dealt with by Howard Kennedy. I do not think that is appropriate. I think it is right to assume that for provincial cases Howard Kennedy should be expected to recover provincial rates, but they are entitled to an uplift on these rates."
"The Master took Bristol rates because he considered that Bristol was a city with appropriate legal expertise. He did not take it because he forgot that Thompsons were in Exeter."
Legal principles
"[I]n deciding whether such an objection is sustainable in practice, the focus is primarily upon the reasonable interests of the plaintiff in the litigation so that, in relation to broad categories of costs, such as those generated by the decision of a plaintiff to employ a particular status or type of solicitor or counsel, or one located in a particular area, one looks to see whether, having regard to the extent and importance of the litigation to a reasonably minded plaintiff, a reasonable choice or decision has been made. If satisfied that the choice or decision was reasonable, it is the second question 'what is a reasonable amount to be allowed?' which imports consideration of the appropriate rate or fee for a solicitor or counsel of the status and type retained. If not satisfied that the choice or decision was reasonable, then the question of 'reasonable amount' will fall to be assessed on the notional basis of the costs reasonably to be allowed in respect of a solicitor or counsel of the status or type which should have been retained. In either case, solicitor's hourly rates will be assessed, not on the basis of the solicitor's actual charging rates, but (in a case where the decision to retain was reasonable) on the basis of the broad costs of litigation in the area of the solicitor retained or (in a case where the choice made was not reasonable) of the type or class of solicitor who ought to have been retained".
Kennedy LJ agreed that Potter J had stated the right test but concluded that he had not applied it correctly. That Mr Wraith's trade union had adopted the practice of sending all their work to central London solicitors was of limited relevance to the question whether the costs of doing that had been reasonably incurred; Potter J. had erred in regarding that factor as conclusive of the question: at 142F-143A.
The appeal and cross-appeal
(a) Was it reasonable to instruct a London firm?
(b) What was the reasonable hourly rate?
Conclusion