Some interesting costs judgments: June 2024

For those with an interest in legal costs, here are links to a few judgments released in June 2024, all addressing interesting – but far from workaday – costs issues.

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First, a reminder that a binding compromise of a costs dispute (potential or extant) may preempt assessment of solicitor’s costs under the Solicitors Act 1974, S70.? Holcroft v Thorneycroft Solicitors Ltd [2024] EWHC 1473 (KB). See here.

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Then, in Smith v Kirkegaard (aka Engman) [2024] EWCA Civ 698, confirmation from the Court of Appeal that whilst a failure to pay costs may be a contempt of court, payment of the costs order cannot be enforced by committal. See here .

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Finally, in setting aside a by-the-issues costs order, the Court of Appeal has very recently found an appellant to have cleared the high hurdle required to successfully challenge a judge’s discretion on costs. A rare event!? Rather than making an issues-based costs order simpliciter, the judge ought instead to have determined the overall winner, and having done so ought to have determined whether the costs of that party should be discounted and, if so, by how much. [Note however that the Court of Appeal left open the question whether the failure to carry out the exercise referred to in CPR 44.2(7) might of itself constitute a sufficiently serious irregularity to undermine a costs order].? See Houssein v London Credit Ltd [2024] EWCA Civ 721. See here.