DACB have successfully challenged a Claimant’s cost budget of almost £1million, obtaining an order compelling the claimant to submit a revised cost budget. The Claimant’s cost budget will now be scrutinised and reconsidered at a later date following the lively discussion that took place at a recent Case Management Conference.
Mr Justice Baker in Dreams Living Ltd. v Allianz Insurance Ltd was so concerned with the ‘overlawyering’ of projecting 260 hours on witness statements that he said the statements would go straight in the bin as they would not be capable of being trusted. The Judge went on to find it ‘mind-boggling’ that £120,000 could be spent dealing with four witness statements and rejected the £160,000 claimed to deal with disclosure.
The case serves as an example of the robust stance that will be taken against what the court described as the ‘eye-watering’ figures submitted within a costs budget. Costs budgets should not be inflated in anticipation of being reduced, but should be submitted in the first instance to reflect what should be reasonably and proportionately anticipated. It is another example of how unrealistic budgets will be ignored as they serve no value in assisting the court performing its costs management function.
Denise Eastlake of DACB is instructed on behalf of the Defendant and was assisted in the challenge to the Claimant’s costs budget by Philip Robotham, a Costs Lawyer in DACB’s specialist costs team. Anna Laney from Crown Office Chambers represented the defendant at the hearing.
