Tag Archives: CFA

On 16 February 2012 the Court of Appeal handed down judgment in Adrian Simcoe v Jacuzzi UK Group Plc [2012] EWCA Civ 137

This judgment confirmed that interest on costs is recoverable from the date that the court awards costs / date of agreement to pay costs and not, as the Defendant argued, from the date that costs are assessed.

The case notes that such interest is mandatory in County Court cases, as pre-CPR statute removes any judicial discretion, but that the High Court may look at all factors when deciding interest.

The judgment is based upon the general rule that interest is recoverable from the date that costs are awarded. There is no reason to alter the position purely because the Claimant is funded by a CFA and may not have paid out costs during the litigation.

As this entitlement to interest is now mandatory in most CFA–funded cases, Claimant’s should calculate interest on every claim for costs and set this out as a separate figure.

The only exception is where costs and damages total less than £5,000.00. Here interest cannot be claimed as only recoveries above this sum are covered by statute.

In light of the judgment, Claimant’s should reconsider all recent offers to meet costs in CFA cases; are these offers inclusive of exclusive of interest? Does the recovery of interest alter the attractiveness of such offers?

Nova Costs will be happy to advise upon any issues arising out of this judgment to maximise your costs recovery.

 

If you would like to speak to one of our costs experts please call us today on 0161 276 2000 or email us at info@novacosts.com