A new judgment on the grade of fee earner appropriate for historical abuse cases has prompted fierce debate between lawyers about wider costs levels for this type of claim.
National firm Keoghs highlighted last month’s ruling of Master Brown in the unpublished TRX v Southampton Football Club as useful new guidance on the make-up of legal teams running these claims.
The master reduced claimant costs from £65,523 to £23,000 after saying he would ‘reasonably expect’ a Grade C solicitor with at least four years’ experience of running sexual abuse claims to conduct the case as principal or main fee earner. He added that the more ‘generic costs aspects’ of the bill - covering the background to this and other similar claims - may need ‘some input by way of supervision’ from a more senior fee earner.
He reduced costs sought from £480 per hour (Grade A fee earner) to £330, from £365 for Grade B to £250, and from £350 for Grade C to £210 per hour.
The claim was from a victim of convicted football coach Bob Higgins, who perpetrated a campaign of abuse against boys at the Southampton academy in the 1970s and 1980s. It was settled for £4,000 shortly after proceedings were served.
The case shines a light on a wider controversy about what costs are appropriate on these cases and the tactics employed during proceedings.
Keoghs director Paul Edwards said non-recent abuse claims were difficult and sensitive to deal with, and as a result legal costs ‘routinely dwarf’ the compensation recovered. He added: ‘For some time there has been a growing concern about the level of bills presented in these claims.
‘Senior fee earners often lead these claims with the consequence that claims for excessive hourly rates are made at same the time as relying on counsel and incurring substantial amounts of time.’ Edwards added that the master’s guidance would assist in the assessment of costs in future claims.
But claimant lawyers insist the decision was fact-sensitive and has little consequence for other claims. Sam Hayman, partner and head of costs at Bolt Burdon Kemp, which represented TRX, said Master Brown had ‘failed to appreciate the inherent difficulty of conducting these claims and the importance of the issues’.
Hayman added: ‘The approach of institutions and their lawyers to claims of this nature are disgraceful and a primary driver as to why senior lawyers are required, despite the sometimes modest damages in play.’ Permission to appeal aspect of the decision has been granted.
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