03.01.08: Nicholas Crane v Canons Leisure Ltd [2007] EWCA Civ 1352

(Success Fees - Court of Appeal decision)

 

The Court of Appeal had to decide whether a success fee was recoverable upon the external costs draftsman's fees.

By a two to one majority the CoA found that in the instant case, a success fee would be allowable notwithstanding that the costs draftsman's fees were a "disbursement".

 

It was decided that the work undertaken by the external costing firm could have been undertaken by the solicitors and had they done so, they would have a right to a success fee thereon.

 

It is crucial that the CCFA or the CFA contain adequate provision for recovery of a success fee for this externally undertaken work, however, providing that provision is in place, a success fee is recoverable in principle.

 

The Court then had to consider what percentage success fee should be allowed.

It was concluded that the same success fee (ie. that allowed on the main action base costs) should apply - there is already sufficient case law which permits this principle.