Filing Accurate Costs Estimates

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The importance of filing accurate costs estimates at allocation or listing was highlighted recently in Tribe v Southdown Gliding Club Ltd, Adam and King. 

The Claimant had lost his case and the Defendants were entitled to their costs. 

The main issue concerned the costs of the First and Third Defendants. They ultimately claimed costs approaching £250,000.00 when detailed assessment proceedings were commenced. 

During the assessment proceedings an issue arose about the effect of the costs estimate which the First and Third Defendants had filed and served at allocation. That document estimated that the costs incurred to date were £7,500.00 and that the overall costs would be £50,000.00.

The Claimant was able to establish that he had reasonably relied upon the estimate given by the First and Third Defendants in their allocation questionnaire and those Defendants were not able to satisfactorily explain the difference between that estimate and the costs being claimed.

The Judge accepted that the estimate could not be a costs cap but arrived at a figure of £70,000.00 as being the most that the First and Third Defendants should be able to recover in respect of their costs because of the low estimate that was given, the Claimant's reliance on it and the absence of a satisfactory explanation of the difference.

The receiving parties suffered a considerable loss as a result of the low estimate that had been given at allocation and the case illustrates the importance of filing accurate and realistic estimates.

If you've any queries about the case or any costs issues let me know, and I'll do my best to help.