Hourly rate or success fee?
When considering the issue of what hourly rates to allow, in the preliminary issues judgment in Motto & Ors v Trafigura Ltd & Anor  EWHC 90201 (Costs) (15 February 2011), amongst the relevant factors identified by Master Hurst was:
“I have no doubt in this case that Mr Day has taken responsibility for this litigation at great personal financial risk to himself, and financial risk to his firm generally.”
I don’t understand this.
The ‘financial risk’ was the risk that the claims would fail and, as they were being run on a ‘no win, no fee’ basis, no costs would be recovered. However, that is what the success fee is designed to cover and was considered elsewhere in the judgment.
To factor this in when considering what hourly rates to allow appears to be a case of double-counting.