Success fee was ‘grotesque’

James Pankhurst v (1) Lee White (2) Motor Insurers Bureau [2010] EWCA Civ 1445 15 December

The claimant had suffered serious injuries in an accident involving an uninsured driver. He issued proceedings and obtained summary judgment on liability against the driver subject to the determination of the issue of contributory negligence. The claimant then entered into a conditional fee agreement which provided for a success fee of 22.5% if the action settled pre-trial and 100% if the action went to trial. The claimant subsequently made a Part 36 offer to accept £3.4m which was rejected. At the trial of the issue of contributory negligence the judge held that the claimant was entitled to damages on the basis of full liability. As a result the claimant was no longer willing to settle on the terms offered. The MIB made a Part 36 offer to the value of £6.8m. At the trial of the issue of quantum, damages were awarded totalling £6.1m. It was agreed that the claimant would pay the MIB’s costs from the last date on which its offer could have been accepted. The judge took into account the claimant’s offer and ordered the MIB to pay costs for a two year period on an indemnity basis but ordered that there would be no award of interest under CPR Pt 36 (I) r.36.14(3)(a) on damages referable to future losses and no award of interest on costs under r.36.14(3)(c).