Agassi Beaten on Costs Issue

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Tennis star Andre Agassi recently suffered a setback in the Court of Appeal when he was denied the right to claim all of his costs, after a successful action in a tax case, because he had used tax advisers, not solicitors, for his tax advice.

When Mr Agassi gained his victory, persuading the Court that a corporate structure he had used succeeded in making his UK earnings exempt from tax in this country, he might have expected as the winner of the case, to have his costs met by HM Revenue and Customs.

His advisers were a barrister and tax advisers who were members of the Chartered Institute of Taxation, not solicitors. In a ruling that addressed several issues, the Court ruled that Mr Agassi was effectively a ‘litigant in person’ and was not entitled to recover all of the costs of the tax experts.

This may seem an odd decision, but the courts are strict on which costs can and which cannot be recovered.

To allow litigants to use any person they choose to represent them and then to claim costs if they win their case would, effectively, allow successful claimants to present a blank cheque which would have to be met by the losers. For that reason, the Courts and Legal Services Act 1990 defines ‘authorised bodies’, members of which can represent litigants and claim their fees. The Chartered Institute of Taxation is not such a body and an ‘unauthorised litigator’ cannot exercise the right to conduct litigation and be remunerated for so doing.

Whilst one has every sympathy for Mr Agassi, who will recover only part of his costs, successful and cost-efficient litigation demands experience and appropriate training. Solicitors are best placed to act on a client’s behalf and can instruct any experts necessary to support the case.

Had Mr Agassi used a solicitor, his costs would have been recoverable.