The recently handed down Judgment of Manning and Beggs v King’s College Hospital NHS Trust concerned an appeal against the Costs Judge’s refusal to grant relief from sanction where there had been a failure to serve a Notice of Funding.

On appeal relief was granted and the Court found that whether a paying party had been prejudiced by the lack of notice was a central issue to be considered.  The Judgment and the SCCO cases of Haydon v Strudwick and Tate v Cataldo should be considered when faced with this argument.

In the recently reported case of Fortune v Roe the Court held in that a success fee of 20% was deemed appropriate where the CFA was entered into after liability had been admitted.

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Important amendments to the Costs Practice Direction in the latest version of the CPR.

In particular, Section 32.5 which deals with what are the relevant details of an additional liability which must be served with the Notice of Commencement.  These details now include the following (even for post November 05 CFAs):-

1.   A copy of the risk assessment or a statement of the reasons for the percentage increase.

2.   The CFA itself or alternatively a statement so as to enable the paying party and the Court to determine the  level of     risk undertaken which must include the definition of “win” and if applicable “lose”, details of the liability to pay costs if the party wins or loses and details of the liability if there is a failure to obtain a Judgment more advantageous than a Part 36 offer.

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