TMO Renewables Ltd v Reeves & Anor

Costs for a hearing lasting no more than one day should generally be summarily assessed unless there is good reason for detailed assessment. Substantial disputes about hourly rates, counsel’s fees, supplemental costs, VAT or the extent of recovery may together constitute such a reason. Where detailed assessment is ordered, the court may require a payment on account of the costs reasonably estimated to be recoverable.

The claimant had appealed against orders made by Deputy Master Nurse concerning the costs of two applications. The appeal had been allowed in an earlier judgment. The consequential issue was whether the claimant’s costs of those applications and of the appeal should be summarily assessed or subjected to detailed assessment.

The claimant sought summary assessment and a payment on account. The respondents relied on several matters said to make summary assessment inappropriate, including substantial differences between the solicitors’ hourly rates and guideline rates, disproportionate counsel’s fees, a supplemental statement of costs, uncertainty concerning VAT and the extent of recoverability under a conditional fee agreement.

1. Under Civil Procedure Rules 1998, CPR 44PD.9.1 and paragraph 9.2, the court had to consider summary assessment. The general rule for a hearing lasting no more than one day is summary assessment unless there is good reason to order detailed assessment.

2. The respondents’ points, taken together, provided good reason for detailed assessment. The costs of the applications and the appeal were therefore to be subject to detailed assessment if the parties could not agree them.

3. A payment on account was appropriate pending detailed assessment. A reasonable payment was £45,000, payable within 28 days.

• High Court (Chancery Division): The appeal from the Deputy Master’s order dated 7 October 2019 had been allowed in an earlier judgment dated 8 April 2020. This judgment determined consequential costs matters.
• Deputy Master Nurse: Ordered costs of the inspection application to be paid by the claimant and costs of the split-trial application to be paid by the respondents, with detailed assessment.