- Assessment of solicitor and client costs in low value personal injury claim (SGI v Karatysz)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
PI & Clinical Negligence analysis: SGI Legal LLP v Karatysz concerned a solicitor client assessment of costs in a low value whiplash claim. The client had been informed at the outset that the hourly rates when multiplied by the number of chargeable hours might exceed the fixed costs recoverable inter partes, potentially resulting in a shortfall. The solicitors had not however informed her of the hourly rate nor provided a cost estimate. At first instance District Judge Bellamy held that the solicitors’ base costs recoverable from the client were limited to base costs recovered inter partes (ie fixed costs). Mr Justice Lavender allowed the solicitor’s appeal. He held that the facts that (a) the hourly rate was unusually high; and (b) the client had not given informed consent in respect of this, did not restrict recovery to the inter partes costs. It merely meant that the solicitors could only recover hourly rates reduced to a reasonable level. Written by Andrew Roy and Henry King, barristers at 12 King’s Bench Walk.
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