“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.”
In the recent case of Samsung Electronics Co Ltd & Ors v LG Display Co Ltd & Anor (Costs) [2022] EWCA Civ 466, the Court of Appeal summarily assessed the costs of the successful Respondent on the standard basis and the brief judgment handed down on 06 April 2022 provided guidance on how the Court should consider rates in a claim for costs against guideline hourly rates for summary assessment in all types of litigation.
It was common ground that the Respondent / Defendant should have the costs of an appeal, to be summarily assessed on the standard basis.
The Respondents, having been successful in bringing an appeal, sought to recover hourly rates in excess of the guideline hourly rates. The Respondents attempted to justify the hourly rates claimed stating “that its hourly rates are above the guideline rates, but that is almost always the case in competition litigation”.
Lord Justice Males said: “I regard that as no justification at all. 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. It is not enough to say the case is a commercial case, or a competition case, or that it has an international element, unless there is something about these factors in the case in question which justifies exceeding the guideline rates.”
The case concerned a one-day appeal, where the only issue was the appropriate forum for the case. The documentation for the case was not heavy, and the amount claimed of £900,000 was modest by the standards of commercial cases. As such there was nothing to justify the rates claimed in the Respondents’ costs schedule and the costs were reduced from £72,818.21 to £55,000.00.
Whilst the judgement concerns a summary assessment it is likely to be cited by paying parties seeking to reduce hourly rates in excess of guideline rates at detailed assessment and clear and compelling justification should be provided to maximise recovery.
If you have any queries in relation to this article or require advice or assistance on any aspect of legal costs, please contact our Senior Partner, John Mistri, by calling 0800 086 2929 or by emailing jmistri@elitelawsolicitors.co.uk
