Fee Earner Grades Costs Dispute: TRX v Southampton FC [2022] EWHC B7 (Costs)

 

 

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Fee Earner Grades Costs Dispute: Facts of the Case

The matter of TRX v Southampton Football Club Ltd arose from allegations of sexual abuse towards the claimant, from a previous employee of the defendant. Upon settlement, the claimant was given £4,000 in damages.

In relation to legal costs, a fee earner grades costs dispute arose as the Claimant’s bill of costs totalled £65,500. Master Brown deemed this a significantly excessive figure for a High Court case of this nature.  Consideration was therefore given as to the hourly rates utilised and appropriateness of the grades of the fee earners was conducted.

 

Court’s Considerations

Master Brown sat as the judge on the matter at the Senior Court Costs Office. The Master stated that he would pay regard to the “seven pillars of wisdom”, also known as the seven points provided in CPR 44.3(3):  

(3) The court will also have regard to –

(a) the conduct of all the parties, including in particular –

(i) conduct before, as well as during, the proceedings; and

(ii) the efforts made, if any, before and during the proceedings in order to try to resolve the dispute;

(b) the amount or value of any money or property involved;

(c) the importance of the matter to all the parties;

(d) the particular complexity of the matter or the difficulty or novelty of the questions raised;

(e) the skill, effort, specialised knowledge and responsibility involved;

(f) the time spent on the case;

(g) the place where and the circumstances in which work or any part of it was done; and

(h) the receiving party’s last approved or agreed budget. 

He began with an extensive assessment on “the skill, specialised knowledges and responsibility” of the fee earners working on the case. Master Brown stated that use of a specialist sexual abuse firm in London was warranted, though he gave further consideration to the grades of the solicitors working on the case. 

The judge decided that a Grade C Solicitor would have been equipped with their four years litigation experience to effectively handle this case. He added that fee earners of equivalent experience would have also been appropriate. Grade A fee earners were deemed too experienced to conduct “general day to day handling of the claim”, although the judge stated that costs for their supervision could be allowed.

Next, the judge moved onto analysis of the hourly rates utilised. The “starting point” was placed at the outer London guideline rates. From this point, the judge believed that due to the expertise required of sexual abuse specialist solicitors, the rates could be enhanced. Though Master Brown stated that the rates claimed in the Bill of Costs were too high however, he provided alternative rates to be used for costs in this case.

 

The Conclusion of the Court

Subsequent to his consideration, Master Brown decided to reduce the recoverable costs for the Claimant to £23,000. This figure took into consideration that grade C fee earners should have been used for most of the work, as opposed to more senior staff, and also included a reduced hourly rate.

 

Guideline Hourly Rates

 

Guidance for the hourly rates which should be used for fee earners is published online.

Depending on the amount of experience that an individual has, the extent to which any deviation applies to the guideline hourly rates will differ, and often the guidelines are utilised as is for the purposes of straight-forward litigation. There are different grades of fee earner depending on the role and litigation experience. For example, a Grade A fee earner would be a Solicitor or Legal Executive (CILEX) who has over 8 years post qualification experience whereas a Grade D fee earner would be Trainee Solicitors, Paralegals, and other junior fee earners.

Moreover, the applicable guideline rate to use as a starting point will vary depending on the location of the fee earner. In London, the rate is higher due to the higher cost of living however, it should be noted that in the most recent revision to guideline rates, the gap between National 2 and National 1 rates has significantly reduced, such that there is very little disparity between the rates of Solicitors conducting work outside of London.

 

How can ARC Costs Assist Your Costs Claim?

At ARC Costs, our team of legal costs experts are well equipped to assist on all types of legal costs disputes, including fee earner grades costs disputes. We assist throughout the detailed assessment of costs, and as independent experts we can provide accurate Bills of Costs, as well as expertly drafted Points of Dispute and Replies. Our Costs Lawyers can also represent clients at costs hearings, including summary assessments and detailed assessment.

As a paperless costs law firm, we can guarantee a prompt and organised service which can be relied upon to provide consistently excellent legal costs recovery.

To find out more about how we can help, please telephone us on 01204 397302 or email us at info@arcccosts.co.uk.

 

 

 

 

 

Request Your Free Quotation

Contact us today for your free, no obligation quotation. Our team are on hand to help.

Fee Earner Grades Costs Dispute: Facts of the Case

 

This matter (TRX v Southampton Football Club Ltd) arose from allegations of sexual abuse towards the claimant, from a previous employee of the defendant. Upon settlement, the claimant was given £4,000 in damages.

In relation to legal costs, a fee earner grades costs dispute arose as the claimant’s bill of costs totalled £65,500. Master Brown deemed this a significantly high figure for a High Court case. Therefore, consideration of the hourly rates utilised and appropriateness of the grades of the fee earners was conducted.

 

Court’s considerations

 

Master Brown sat as the judge on the matter at the Senior Court Costs Office. The judge stated that he would pay regard to the “seven pillars of wisdom”, also known as the seven points provided in CPR 44.3(3):  

(3) The court will also have regard to – 

(a) the conduct of all the parties, including in particular –

(i) conduct before, as well as during, the proceedings; and

(ii) the efforts made, if any, before and during the proceedings in order to try to resolve the dispute;

(b) the amount or value of any money or property involved;

(c) the importance of the matter to all the parties;

(d) the particular complexity of the matter or the difficulty or novelty of the questions raised;

(e) the skill, effort, specialised knowledge and responsibility involved;

(f) the time spent on the case;

(g) the place where and the circumstances in which work or any part of it was done; and

(h) the receiving party’s last approved or agreed budget. 

He began with an extensive assessment on “the skill, specialised knowledges and responsibility” of the fee earners working on the case. Master Brown stated that use of a specialist sexual abuse firm in London was warranted, though he gave further consideration to the grades of the solicitors working on the case. 

The judge decided that a grade C solicitor would have been equipped with their four years litigation experience to effectively handle this case. He added that fee earners of equivalent experience would have also been appropriate. Grade A fee earners were deemed too experienced to conduct “general day to day handling of the claim”, although the judge stated that costs for their supervision could be allowed.

Next, the judge moved onto analysis of the hourly rates utilised. The “starting point” was placed at the outer London guideline rates. From this point, the judge believed that due to the expertise required of sexual abuse specialist solicitors, the rates could be enhanced. Though Master Brown stated that the rates claimed in the Bill of Costs were too high. Thus, he provided alternative rates to be used for costs in this case.

 

The conclusion of the court

 

Subsequent to his consideration, Master Brown decided to reduce the recoverable costs for the claimant to £23,000. This figure took into consideration that grade C fee earners should have been used for most of the work, as opposed to more senior staff, and also included a reduced hourly rate.

 

Guideline Hourly Rates

 

Guidance for the hourly rates which should be used for fee earners is published online.

 

Depending on the amount of experience that an individual has, their guideline hourly rate will differ. There are different grades of fee earner depending on the role and litigation experience. For example, a grade A fee earner would be a solicitor who has over 8 years post qualification experience whereas a grade D fee earner would be trainee solicitors, paralegals, and other fee earners such as legal executives from the Chartered Institute of Legal Executives (CILEX).

 

Moreover, this rate will vary depending on the location of the fee earner. In London, the rate is higher due to the higher cost of living.

 

How can ARC Costs assist?

 

At ARC Costs, our team of legal costs experts are well equipped to assist on all types of legal costs disputes, including fee earner grades costs disputes. We assist throughout the detailed assessment of costs, providing accurate bills of costs, as well as expertly drafted points of dispute and replies. Our costs lawyers can also represent clients at costs hearings, including summary assessments and detailed assessment.

As a paperless costs law firm, we can guarantee a prompt and organised service which can be relied upon to provide excellent legal costs recovery.

To find out more about how we can help, please telephone us on 01204 397302 or email us at info@arcccosts.co.uk.

 

 

 

 

 

Request Your Free Quotation

Contact us today for your free, no obligation quotation. Our team are on hand to help.

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01204 397302

info@arccosts.co.uk

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