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Costs: Could being frugal end up costly?

08 April 2022 / Laura Rees
Issue: 7974 / Categories: Features , Profession , Costs
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Laura Rees discusses the perils of being economical with budget information
  • A look at the recent case of ST v ZY whereby the claimant’s solicitors came under fire for seeking recovery of costs.
  • The importance of discussing budgets with clients.

The recent decision in ST v ZY [2022] EWHC B5 (Costs), All ER (D) 95 (Feb) by Senior Costs Judge Gordon-Saker is another decision where claimant solicitors faced criticism for seeking to recover a shortfall in the costs from their client when they had not supplied sufficient information.

The case proceeded on behalf of the claimant (a minor), the claimant’s mother and the claimant’s three siblings. The case brought by the mother and her three other children was discontinued but continued for the claimant. The claimant’s solicitor, Irwin Mitchell, wrote to their client at the conclusion of the claim seeking to recover a shortfall of the costs totalling £53,719. The costs budget had been exceeded by over £31,000 and the 1% and 2% costs recoverable in respect of budget preparation and the costs management process had been exceeded

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