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Mastercigars Direct Ltd. v Withers Llp [2009] EWHC 993 (Ch) (22 April 2009)

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Costs Judge Gave Inadequate Reasons For Selecting 20% Margin Above Costs Estimate: Morgan J. held that a costs judge had given inadequate reasons for selecting a 20% margin over a costs estimate as the limit on the costs recoverable in a situation where he had been required to determine upon detailed assessment the reliance that had been placed on that estimate. The costs judge had failed to address two relevant considerations: (i) what level of costs would have caused the client to change solicitors; and (ii) at what date between the estimate and the trial would they have effected that change. Although it was not necessary for the client to prove a detriment on the balance of probabilities, the costs judge needed to identify and explain the factors that he did take into account. The ultimate question was what sum it was reasonable for the client to pay, in light of the estimate and any other relevant matter.

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