Costs cap in Alder Hey group action – APIL Vol 13 Issue 3 June 2003

 

 

The defendant in the so called Alder Hey organ retention group action applied to cap the claimants’ costs in the High Court last month. In his order dated 9 May 2003, His Honour Justice Cage ordered that there should be “ a costs cap on the claimants” costs from 10 February 2003 to the end of the trial in the sum of £506,500.” He indicated that he made this order on the basis of a four-week trial. The parties have the option to apply to vary the order in the event of some future unforeseen and exceptional factor which affects costs. (Such as the trial lasting longer than the estimated four weeks). Mr. Justice Cage admitted that “the Civil Procedure Rules makes no reference to a specific power in the court to make a costs cap order. However it is clear from the Woolf report that the Court, particularly in multi-party actions, is encouraged to take control of costs just as it is to control the management of issues”. A copy of the order is available from Legal services at the APIL office upon request.

 

Legal Budgets Ltd commented that it was interesting that the average hourly rate allowed in the order is £155.00, for work up to trial in 2004. “ I was under the impression that this type of work, if it can be broadly classified as ‘med neg’ was complex and comparable to commercial work,” he said, “but the rates allowed are low.” Especially when compared to the £300 hourly rate for a partner in the case of Higgs v Camden & Islington HA (2003), QBD 16 January 2003.