- Guideline Hourly Rates ‘barely even a starting point’ in some cases (Shulman v Kolomoisky)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: A defendant to a high-value claim in the Commercial Court instructed an international firm of solicitors based in Canary Wharf to dispute the court’s jurisdiction. He was awarded his costs of that application. The hourly rates charged by his solicitors were substantially higher than the Guideline Hourly Rates (GHRs) for both outer London (where his solicitors were based) and the City of London. The claimant offered rates which were lower than the rates he had paid to his solicitors and were in between the city and outer London GHRs. When determining the appropriate hourly rates, the court did not place any weight on the rates paid by the claimant. It observed that the GHRs were ‘barely even a starting point in a case such as this’. As the defendant had not provided any evidence supporting the rates claimed, the court applied the factors at CPR 44.4(3) to decide what was reasonable. Written by Alex Bagnall, technical manager at Total Legal Solutions.
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