In the New Year, the court is set to hear the appeal from Motto v Trafigura as to whether interest should be allowed on costs from the date of judgement or from a later date in cases funded by way of CFAs.
In quick summary of the cases to date, the issue was raised in Gray v Toner where it was adjudged that interest was not recoverable on costs until a final costs certificate has been issued.
In Motto v Trafigura, it was adjudged that the court should use its discretion and apply interest from the date of the costs certificate rather than from the date of the judgement. This is the subject of appeal in January 2012.
However, Master Leonard has now thrown his hat into the legal ring with the case of Kurian v Falzon and ordered that interest should be payable on costs from the date of Judgement.
Which way will the Law Lords go in January? There is significant public policy arguments in favour of both possible outcomes. Probably the worst outcome will be a case specific outcome whereby further satellite litigation will be generated.
Following the mammoth judgement that was Motto v Trafigura by Senior Costs Master Hurst, permission to appeal certain issues was given. These were:
ii) Vetting costs;
iii) Pre-Action Protocol;
iv) Medical reports;
v) Abandoned claims;
vi) Settlement and distribution;
vii) Cost of funding;
viii) Success fee;
ix) ATE premium.
The interesting and useful findings that have general application are as follows:
ii) Vetting Costs – subject to a valid retainer being in place to cover the work, and any arguments over proportionality, reasonableness and necessity, the work done in vetting the clients is recoverable.
With regards vii) costs of funding, the Court of Appeal have ruled: