‘Anecdotal evidence suggests that Defendants in failed personal injury claims are increasingly making use of the Court’s wasted costs powers in an attempt to recover costs from Claimants’ legal representatives. Often this is in cases where the Defence is either explicitly or implicitly one of fraud. In such cases the terms of the ATE insurance (if indeed any is held by the Claimant) are often such that the policy does not pay out. Thus, Defendants are sometimes left in the position of holding a costs order against a ‘man of straw’. To circumvent this problem it seems some Defendants are making costs applications against legal representatives directly, using the wasted costs jurisdiction. The recent case of Kagalovsky v Balmore Invest Ltd [2015] EWHC 1337 (QB)[1] provides a salutary reminder of the difficulties a party faces when seeking to persuade a Court to make a wasted costs order.’
Zenith PI Blog, 20th May 2015
Source: www.zenithpi.wordpress.com
