The Supreme Court Costs Office

No.18 of 2005

Swatton v Smithurst

3 February 2005

His Honour Judge Harris QC

This case on appeal from a District Judge concern the extent of recovery by solicitors under the fixed costs regime in low value road traffic accident claims pursuant to CPR 45.7 to 45.11 and the appropriate Practice Direction. The facts were that the claimant was injured in a road traffic accident on 22 October 2003 and his car was damaged. His insurers dealt with the cost of a replacement hire car direct with the defendant’s insurers and the total cost of these claims to over £8,000.00. The claimant’s personal injury claim was settled for £1,850.00 plus costs and the question which the Judge had to decide was whether those costs should be calculated by reference to the sum of £1,850.00 or by adding in the recovery which the claimant made for car hire and damage to his vehicle.

The Judge held the expression "total value of agreed damages" meant the total value of the agreed damages in respect of those aspects of the claim with which the solicitor had been retained to deal. Where other parties like insurers or car hire providers conduct their own negotiations without the involvement of the solicitors, then the solicitors should not be paid for that work.