Eversheds Sutherland secures win for banks in benchmark costs case

 

In a highly significant High Court judgment for the legal industry, the senior Costs Judge Gordon-Saker has handed down judgment in a long running costs dispute between claimants (represented by Liverpool-based solicitors, Parkerwall Limited), and Shawbrook Bank Limited, Ikano Bank AB (Publ) and Creation Consumer Finance Limited (all represented by Eversheds Sutherland (International) LLP). 

The case of Ann Francis Ikin & others vs Shawbrook Bank Limited & others concerned claims for costs following settlements in solar panel litigation matters where Parkerwall Limited represented the claimants.  During the course of the assessment, in which a series of bills of costs were initially reduced by between 65% and 70%, the court found that “virtually all the time claimed had been estimated”, that parts of the bills of costs were “imaginary work” and “just fiction”, and “the bills are intentionally misleading”, resulting in Eversheds Sutherland securing a substantial wasted costs order for their clients on the indemnity basis.

The Eversheds Sutherland team consisted of partners Glenn Newberry, Matthew Taylor and Victoria Savage, with support from senior associates Gerard Mason, Katie Fisher and Gemma Lynch and associate Richard Antuch.

This decision is of significance to the legal industry who are reminded that a signature on a bill is not just a formality, and the onus is on the lawyer certifying the bill, even if you are not the lawyer who originally conducted the case.

Commenting on the successful outcome of this case, Glenn Newberry, Partner at Eversheds Sutherland and lawyer for Shawbrook Bank and others, said:

“We are pleased with the High Court’s findings in this case given the grossly inflated and misleading costs’ claims which our clients were facing, and the attempts to obfuscate the true position. The ruling is a notable and timely reminder to all in the industry that a signature on the bill of costs really is significant and not just a rubber stamping process. The duty to check the accuracy of the bill lies with the lawyer.  Simply signing a bill and trusting that others have got it right is not good enough.”

Lorna Biondi, Head of UK Branch Governance & Legal Services at Ikano, commented:

“The guidance and wonderful support we received from Glenn and the wider team at Eversheds Sutherland made all the difference in this case and we couldn’t be happier. Their commitment and tenacity to get to the bottom of the issue combined with their experience and technical know-how were all crucial to securing this successful outcome.”

The full judgment can be read here.