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03 January 2008 / Virginia Rylatt
Issue: 7302 / Categories: Features , Legal services , Procedure & practice , Profession
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All Change

MasterCigars has ushered in a new costs regime. Virginia Rylatt explains why

In MasterCigars Direct Ltd v Withers LLP [2007] EWHC 2733 (Ch), [2007] All ER (D) 385 (Nov) Mr Justice Morgan found for Withers in a landmark case that reassesses the effect of estimates, caps, margins and the Solicitors’ Costs Information and Client Care Code 1999. Given its importance, a full explanation of the facts of the case is given below.

On 6 May 2005, Withers wrote to MasterCigars Direct Ltd (MCD) giving an estimate of costs from 6 May 2005 to the end of the anticipated four-day trial which was due to start on 7 July 2005. The letter explained that:

 

“Although the figures are becoming relatively fearsome, it has to be said that the potential fees that might be added by bringing in Geoffrey Hobbs [barrister and QC at

One Essex Court
] are a heavy burden. However, they are guesstimates only in that we cannot ask his clerk for an estimate since they do not yet have all the papers and cannot assess what will

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MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

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