Legal Cost Specialists

Posts made in July, 2022

Departing from Guideline Hourly Rates

By on Jul 28, 2022 | 2 comments

In Samsung Electronics Co Ltd v LG Display Co Ltd [2022] EWCA Civ 466 the Court of Appeal observed that a “clear and compelling justification must be provided” to depart upwards from London 1 Guideline Hourly Rates (GHRs) as “the guideline rates for London 1 already assume that the litigation in question qualifies as ‘very heavy commercial work’”. The Court of Appeal has reinforced that message in Athena Capital Fund SICAV-FIS SCA & Ors v Secretariat of State for the Holy See (Costs) [2022] EWCA Civ 1061. Lord Justice Males: “the appellants’ solicitors’ costs comprised £175,000 (including hourly rates charged well in excess of the guideline rates set out in Appendix 2 to the ‘Summary Assessment of Costs’ guide published in the White Book) … This court has recently held that, in the case of solicitors’ fees, if a rate in excess of the guideline rate is to be charged to the paying party, a clear and compelling justification must be provided: Samsung Electronics Co Ltd v LG Display Co Ltd [2022] EWCA Civ 466. No such justification has been advanced in this case.” Lord Justice Birss: “It may be worth emphasising one aspect. In my experience there has been a view that the previous set of Guideline Hourly Rates (before 2021) were not directed to the heaviest work such as takes place in the Business and Property Courts. In part no doubt this was because they were so out of date. Whatever the position was or was thought to be, it changed in the current set of Guideline Hourly Rates, which were approved by the Master of the Rolls in August 2021. As my Lord pointed out in Samsung v LG, the current set includes a band called ‘London 1’ which is a set of rates directed expressly to very heavy commercial and corporate work by centrally London based firms. I would add that the London 1 rates band in the current Guideline Hourly Rates is based on evidence from the Business and Property Courts themselves (see the Civil Justice Council’s Final Report of April 2021). Therefore the London 1 band is directly applicable to this case and so a justification for the much higher rates was needed.” It remains to be...

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Costs seminar

By on Jul 22, 2022 | 0 comments

Excellent costs update from Hailsham Chambers available to view: Hailsham Costs Seminar Includes very exciting news that Mark Friston’s latest edition of Friston on Costs may be with us...

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