Claimant Penalised for ‘Disproportionate’ Approach to Costs

A claimant who saw his costs budget significantly reduced at a costs management hearing was ordered by the High Court to pay the defendant's costs of that hearing.

The man had sustained a significant injury to his right foot and ankle while working as a refuse collector. He also claimed that the injury had had a psychological impact. Liability was admitted and he sought compensation of £200,000, including damages for loss of income and for the costs of treatment, care and assistance.

Initially, his total costs budget came to nearly £1.2 million, more than three times that of the defendant. After the parties determined that they would be unable to present an agreement on costs at a case management hearing, a separate costs management hearing took place.

The Court observed that many parties agree their budgets by the time case management hearings occur, and costs management hearings are not always inevitable. The Court concluded that the man had maintained an 'unrealistic and disproportionate approach' to his estimated costs, despite a number of opportunities to modify his position before the costs management hearing. The Court observed that the costs management hearing could well have been avoided had he taken a more reasonable approach.

The Court ordered the man to pay the defendant's costs of the costs management hearing, and also reduced his own costs management costs by 35 per cent.