JMW successfully obtain a wasted costs order
JMW has successfully obtained a wasted costs order as a result of the other party's solicitor’s negligence and unreasonable conduct.
Background
JMW partner Nathan Dean, along with his team of Solicitor Rachel Jones and Paralegal Darcey Mulcahy, acted for clients who were the personal representatives (PR) of their father’s estate.
Originally, a legal claim was brought against JMW's clients in their capacity as PRs; however, that claim was ultimately struck out on the basis that the claim had been brought outside of limitation and was an abuse of process. JMW's client was awarded costs on the indemnity basis, and the Court made an interim costs order in the sum of £47.000. The Claimant failed to pay the costs award.
For context, an indemnity basis costs award is the most severe costs award and is usually made when there has been unreasonable conduct. Limitation is the period in which a legal claim should be brought.
How did JMW help?
After reviewing what had happened, JMW's clients made an application for wasted costs. A wasted costs order is usually ordered in circumstances where a legal representative has acted improperly, unreasonably or negligently, and as a result of that conduct a party has incurred unnecessary legal costs. The order is usually made against the law firm.
The application was made pursuant to s 51(6) of the Senior Courts Act 1981 and CPR 46.8, against the Claimant’s solicitors, on the basis that they pursued a claim which no reasonably competent legal representative would have pursued because no reasonably competent legal representative would have considered the prospects of success sufficient to warrant either initiating or continuing the proceedings, and such conduct caused the Defendant (our clients) to incur unnecessary costs. The specific examples of the conduct in question all related to the solicitors' attempts to argue that the claim had been brought in time for the purpose of limitation, which was wrong.
What did the court decide?
The court agreed with JMW's clients and ordered that the other party's solicitors were negligent and that their conduct was unreasonable. The court ordered that the other party's solicitors should pay the wasted costs plus the costs of making the application for the wasted costs order.
Partner Nathan Dean said, “This brings to a conclusion a very difficult time for my clients. A legal claim was brought against them that the court ultimately found to be unreasonable. Our clients will now be paid their wasted costs, and it is a very good result for them.”