Introduction to Costs & Maximising Profit Webinar Professor Dominic Regan Teresa Aitken, Costs...

Introduction to Costs &

Maximising Profit Webinar

Professor Dominic ReganTeresa Aitken, Costs Lawyer

Introduction

The Speakers…….

Professor Dominic Regan Professor at City University, London, columnist for New Law Journal and special adviser to the ACL

Teresa Aitken, Costs Lawyer & Managing Director of PI Costing Ltd

Agenda

• Introduction • Maximising Costs• Costs Law Update

Question

Retainers How can I avoid the pitfalls?

PRIVATE CLIENT

Q - What do I need to bear in mind?

1.Send up to date letters2.Include all Fee Earners 3.Be careful of any initial retainer4.Change of Fee Earner

LEGAL AID

Q - What do I need to be aware of?

1.Retainer on file for pre Legal Aid work2.Check the scope3.Correct Defendant?4.Costs limitation?5.Discharge of Legal Aid

BTE – LEGAL EXPENSE INSURANCE

Q - What do I need to be aware of?

1.Letter to Claimant primarily liable for costs?2.Limit of indemnity 3.Financial printouts

CFA

Q - When do I need to serve a Notice of Funding?

1.Notify Defendant in LOC2.DO NOT disclose level of success fee 3.Serve on all parties4.File further Notice if any changes5.Staged Premium – notify Defendant

CFA

Q - What happens if I have not provided a Notice of Funding?

1.Additional liabilities not recoverable2.File ASAP3.Apply for Relief of Sanctions

CFAQ – What should I bear in mind when setting a success fee?

•Contemporaneous file note detailing risks•Actuarial data on the lost cases •Staged Success Fees•Forgotten uplift! A & B

CFA

Q – Is there anything else I should be aware of when entering into a CFA?

1.CFA Signed2.Cover all work done3.Refer to the correct Defendant?4.Client under the age of 18 when signed5.Right to cancel

CFA

Q – Can I have a retrospective CFA?

YES, however:-

• Needs to be carefully worded • Cannot be simply backdated

COSTS ESTIMATES

Q – When is a Costs Estimate normally required?

At the Allocation and Listing stage

COSTS ESTIMATES

Q. Is it important that the estimate is accurate?

•Yes •20% rule

COSTS ESTIMATES

Q. What should I do if my estimate becomes inaccurate or is likely to be substantially exceeded?

Notify the Defendant and provide a revised estimate

Q. Costs budgeting is coming soon – what do I need to know?

Multi track cases

1 April 2013

Q. How can I get the Right Costs Order

•Be precise and clear•Claim indemnity costs •Multiple Defendants•Provision for Costs ‘assessed forthwith’•Costs ‘of occasioned by the application’

Q. Interim Payments – how can I get one?

•Seek at the time of settlement/final hearing•CPR 44.3(1)(c) and CPR 44.3(8) 3•Mars UK v Teknowledge Ltd (1999) 2 Costs LR 44 •CPR 47.15

How can I maximise my costs?

FILE NOTES

•Make one •Brush and another v Bower cotton & Bower (a firm) ( 1992) Costs LR ( core)223•Neater file = more £££•Real time

ESTIMTED TIMEBAD NEWS

Johnson v Reed Corrugated Cases Ltd (1992) ALL ER 169 QBD

GOOD NEWS

Re Frascati (in chambers) (2 Dec 1981, unreported QBD)

Items likely to be challenged:

•Block time spent•Preparation•Review•Further amendments

ESTIMTED TIMEItems likely to be challenged:

•Funding – setting up CFA/ATE policy•Duplication between Fee Earners•Travel to attend Client (unless there are good reasons e.g. Client immobile etc)

7 PILLARS OF WISDOMCPR 44.5(3) 1.Conduct 2.The amount 3.The importance 4.Complexity5.Specialised knowledge 6.Time spent 7.The place

PROPORTIONALITY

Q. Is there going to be a new ‘proportionality’ test?

Yes, from April 2013: -

44.4(5)

SUMMARY

DON’T leave costs issues until the end of the claim

Use our checklist before settling damages

Case Law Update

Professor Dominic Regan