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Legal and Risk continue to reduce the amount of costs paid to claimants' solicitors

 

In a claim where damages were paid in the sum of £450,000 a Bill of Costs was served claiming £181,000. Although the total sum did not, initially, appear disproportionate, when looking at the damages paid, this was a case where an early admission of liability had been made.

The Defendant disputed the costs incurred investigating aspects of the Claim which in the Defendant’s view was unnecessary and should not be paid for by the Defendant. Costs settled in the sum of £75,000, approximately 40% of the sum claimed. Earlier this year a Bill was received claiming the sum of £311,000. After protracted negotiations and arguments which included the Claimant’s decision to instruct a firm of solicitors based in London at a very high hourly rate, costs were settled in the sum of £205,000. A reduction of £106,000 representing a 33% reduction was achieved.

In a third case, the Claimant served a Bill of Costs dealing with the liability issues only. The matter settled shortly thereafter and a further bill claiming quantum costs was received. The total amount claimed in costs was £296,733.47. The second bill was not compliant with the rules and after five attempts to rectify the position the Health Board was advised to apply to the Court to disallow all or part of the Claimant’s entitlement to costs and to recover the wasted costs the Health Board had incurred. In response to notification of the application the Claimant offered to settle costs for £232,000 a reduction of £72,000.