Kerry Underwood

BUDGET: HIGH COURT AGREES INCREASE

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In JSC Mezhdunarodniy Promyshlenniy Bank and Another v Pugachev and Others [2017] EWHC 1853 (Ch)

the Chancery Division of the High Court dealt with an application to increase the costs budget of the defendant children who were beneficiaries of a trust.

The judge had to consider that the estimate for the length of the original trial was 8.5 days but in fact it would take a total of ten days.

In addition, the estimate of additional costs on behalf of the children’s representative included preparation time along with closing arguments and additional work by the solicitors.

The total of these additional costs came to £84,000.00.

That figure caused somewhat of a surprise to the judge but bearing in mind that the cost budget for the children in defending this action was £1.8 million, then although the £84,000.00 was still a lot of money, it was not as much, in proportionate terms, as might have seemed at first glance.

The claimant submitted that the work which needed to be done should be covered by the existing budget but the judge did not agree.

He said it was clear that more work will need to be done than had been originally budgeted for and that the extra work, in particular the closing submissions, would assist the court in dealing with the proceedings.

As a result, the judge approved the increase in the children’s budget.

The judge was satisfied that the hourly rates charged by solicitors and the rates charged by counsel were reasonable and proportionate in the circumstances.

This is a relatively rare decision of an increase on a costs budget being allowed and therefore is of interest.

Also see:

LATE BUDGET AND RELIEF: NEW CASE

HOURLY RATES IN BUDGET CAN BE CUT ON ASSESSMENT, OR CAN THEY?

COSTS BUDGETING AND ASSESSMENT: RECENT CASES

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Written by kerryunderwood

August 25, 2017 at 10:17 am

Posted in Uncategorized

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