Sidhu v Sandhu & Anor, Court of Appeal - Supreme Court Cost Office, July 24, 2008,  EWHC 90108 (Costs)
|Resolution Date:||July 24, 2008|
|Issuing Organization:||Supreme Court Cost Office|
|Actores:||Sidhu v Sandhu & Anor|
Case No: SCCO 0700245BAILII Citation Number:  EWHC 90108 (Costs)IN THE HIGH COURT OF JUSTICESUPREME COURT COSTS OFFICEClifford's Inn, Fetter LaneLondon, EC4A 1DQDate: 24/07/2008Before :MASTER SIMONS- - - - - - - - - - - - - - - - - - - - -Between :- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - -Mr Mark Friston (instructed by Thompson & Lilley, Solicitors) for the ClaimantMr Richard Wilkinson (instructed by Masseys LLP, Solicitors) for the 2nd DefendantHearing dates: 6 June 2008- - - - - - - - - - - - - - - - - - - - -JudgmentMaster Simons : 1. On 6 June 2008 McDuff J set aside an order dated 23 January 2008 made by Deputy Costs Judge Kings and remitted the issue of enforceability of a Conditional Fee Agreement (``the CFA'') dated 26 October 2005 made between the 2nd Defendant and his solicitors, Masseys LLP to another Costs Judge. As I was sitting with McDuff J as one of his assessors his Lordship decided that it would be proportionate for this issue to be dealt with by me immediately following the appeal.The CFA2. The CFA was based on the standard form of CFA but incorporating a number of changes. Rather than set out the whole of the CFA, I set out below only those clauses of the CFA which I consider to be relevant or were clauses which were referred to me by the parties.``CONDITIONAL FEE AGREEMENTAgreement date: 26 October 2005Between: We, the solicitors, Masseys LLP of 10 Old Bailey, London EC4M 7NGYou, the client, Kalvinder Singh Sandhu(b) Paying usIf you win the case you pay our basic charges, our disbursements and a success fee (see below). The amount of these is not based on or limited by the damages. You are entitled to seek recovery from your opponent of part or all of our basic charges, our disbursements, the success fee and insurance premium (subject to them being assessed). Please also see Conditions 4 and 6 below. To the extent that there is a shortfall between our basic charges and disbursements and the amount you recover from your opponent, you will be liable to pay the shortfall.To the extent that there is a shortfall between the success fee and the amount of the success fee you recover from your opponent we will not ask you for that shortfall. It may be that you make a Part 36 offer or payment which the claimant rejects and at trial the claimant fails to recover damages that are more than that offer or payment. You will pay the success fee for the work done 21 days after we received notice of the offer or payment. To the extent that there is a shortfall between the success fee and the amount of the success fee you recover from your opponent, we will not ask you for that shortfall.If on the way to winning or losing the case you win an interim hearing and costs are awarded in your favour, then you will pay our basic charges and disbursements related to that hearing together with a success fee on those charges. To the extent that there is a shortfall between the success fee and the amount of the success fee you recover from your opponent, we will not ask you for that shortfall.If you end this Agreement before you win or lose the case, you pay our basic charges and disbursements. Such fees and expenses are payable pursuant to the terms of our letter of engagement 3 June 2005 (``the Retainer''). If you go on to win the Case you pay the success fee. To the extent that there is a shortfall between the success fee and the amount of the success fee you recover from your opponent, we will not ask you for that shortfall. Please see Condition 7(a).(b) Basic chargesThese are for work done by us until this Agreement ends. They are calculated as set out below.Such fees and our disbursements are payable pursuant to the terms of the Retainer.5. How we calculate our basic charges......Our basic charges above do not include any charges relating to delayed payment of our basic charges and/or disbursements. No charges will be made in this regard.6 Success feeThis is 14.5% of our basic charges. The reasons for calculating the success fee at this level are set out in Schedule 1 to this Agreement.You cannot recover from your opponent any part of the success fee that relates to the cost to us of postponing receipt of our charges and disbursements. This part of the success fee remains payable by you.Schedule 1 The Success FeeThe success fee is set at 14.5% of basic charges and cannot be more than 100 % of the basic charges. The percentage takes into account:(a) the risks inherent in litigation;(b) the risks in your particular Case;(c) that we have given you a significant discount on our standard hourly rates;(d) that we have agreed to accept that we may not recover the success fee;(e) the additional risk that we have identified.] The matters set out in paragraphs (a) and (b) above together make up 60% of the increase on the basic charges. The matters at paragraphs (c), [and (d)] make up 40% of the increase on the basic charges. So that the total success fee is 14.5% as stated above.]Schedule 2Law Society conditions3. Explanation of words used. ...........(b) Basic chargesOur charges for the legal work we do on your Case. ..........(m) Success feeThe percentage of basic charges that we add to your bill if you win and that we will seek to recover from your opponent.(b) What happens if you win?If you win: You are then liable to pay all our basic charges, our disbursements and success fee - please see Condition 3(n).Normally you will be entitled to recover part or all of our basic charges, our disbursements and success fee from your opponent.You will not be entitled to recover from your opponent the part of the success fee that relates to the cost to us of postponing receipt of our charges and...
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