Nicholas Crane v Canons Leisure Centre [2007] EWCA Civ 1352 19.12.07 success fees applicable to work done on behalf of solicitors
The appellant firm of solicitors appealed against a decision of Maste Wright where he decided that costs incurred by a firm of costs consultants were to be treated as disbursements and so not subject to a success fee. Base costs were defined in the CCFA as charges for work done by or one behalf of the appellant firm. The underlying dispute had been compromised and costs only proceedings were commenced. Costs consultants had been instructed to conduct the detailed assessment and behalf of the solicitors and a success fee equal to that claimed by the solicitor was applied to work done by the consultants.
Held :
The distinction between base costs and disbursements, as defined in the CCFA, was between charges for work done by or on behalf of the solicitor and expenses that the solicitor had incurred on the client's behalf. The work carried out by the costs consultants was undoubtedly solicitors' work. The solicitor may have chosen to delegate the work but never relinquished control of it and responsibility for it. Accordingly, the work was properly described as work done "on behalf of the solicitors" and their fees were properly described as base costs within the terms of the CCFA.
Furthermore, there was no reason of principle or policy that compelled the court to require parties who had entered into CFA's and CCFA's to address separately at the outset the risk of costs proceedings, by way of a different success fee.