Cabot/Morgan £2000 Costs for Small Claims Case

[pookeymonkey]

Hi, this is my first post on here so go easy!!!!

Mrs Pookey has an ongoing claim against her by Cabot for an Egg CC she is nearing the hearing and has just received Morgans Statement of Costs which is nearly £2000.00 on a Small Claims claim of less than £5000.00.

I thought small claims costs were limited to Court costs, a small amount for legal costs and reasonable expense incurred by a representative travelling to attend a hearing - their cost for this is nearly £500.00 to travel less that 140 miles - 280 mile round trip. Even with an overnight stay this seems a bit excessive.

Can costs be challenged and do they have to be justified?

Pookey

[Sapphire]

Re: Cabot/Morgan £2000 Costs for Small Claims Case

Hiya and welcome to Beagles, well yes that does seem excessive, but in fact I am not the person for this, one of my friends will hopefully pop along soon and give you some further advice.

[Amethyst]

Re: Cabot/Morgan £2000 Costs for Small Claims Case

Can you give a bit more info. What is the claim for ? Is he suing them or they suing him ? Whats the defence based upon ? Where exactly in the claim are you ? (a timeline might help being us up to speed)

Has allocation taken place and is the claim in the small claims track ?

Yes costs must be justifiable and although costs are usually limited in small claims that is at the judges discretion.

The info I've asked above will help, as will a copy of their breakdown of costs that they have sent.

[Amethyst]

Re: Cabot/Morgan £2000 Costs for Small Claims Case

For your ref CPR Part 27 can be found PART 27 - THE SMALL CLAIMS TRACK - Ministry of Justice

[pookeymonkey]

Re: Cabot/Morgan £2000 Costs for Small Claims Case

Thanks Amethyst.

The Claim is coming up for the hearing, everything went pretty normally until recently. Morgan submitted claim with very vague POCs, we entered embarrassed defence, Morgan ordered to clarify points in the POC and disclose documents, allocated to Small Claims and witness statements submitted.

It was only after submitting our witness statement which brought up the fact that there was no Default Notice that things got a bit odd.

We then received second witness statement from Morgan saying that they were relying on a blank default notice template and if that did not satisfy the Court then they will seek permission to amend the claim for pre-default arrears only.

We then received their statement of costs which is for £420.00 Court Costs (Issue fee, hearing fee etc.), £1170 for hours worked of which over £1000 is for 'work done on documents' and nearly £500.00 for the attendance of a Grade D (trainee solicitor/para-legal from Morgan.

One thing I have just noticed going over the form again is that it says it is a Statement of Costs for the hearing on ***** (interim application/fast track trial). Perhaps Morgan are just confused and maybe weren't trying to intimidate!!!:tinysmile_hmm_t2:

Pookey

[Amethyst]

Re: Cabot/Morgan £2000 Costs for Small Claims Case

The can charge for the witness statement work, but work done on 'documents' sounds a bit iffy if thye mean recreating the DN etc as they should have had those anyway.

Court costs fine, and £500 for paralegal, I don't know but doesn't sound excessive - hourly fee plus transport.

Costs in small claims are entirely at discretion of Judge - you will, if you lose, have to stump the £420 court fee up - the rest would be arguable.

In their second witness statement did they give a date the DN was supposedly sent out and the dates on such ? and have they provided any evidence that this was the case, despite not being able to locate the original ?

How much is the pre default arrears ?

Also what is the hearing ? Is it an interim application hearing ?

[pt2537]

Re: Cabot/Morgan £2000 Costs for Small Claims Case

Frankly, they are talking utter TOSH,

CPR 27(2)(g) off the top of my head says costs should not be awarded unless there is interalia unreasonable conduct.

furthermore, they are chancing their arm, the N260 is not really applicible for small claims track anyway, as it states on the header as you point out

I would object to costs full stop even if they did win

[Ihaterbs]

Re: Cabot/Morgan £2000 Costs for Small Claims Case

Frankly, they are talking utter TOSH,

CPR 27(2)(g) off the top of my head says costs should not be awarded unless there is interalia unreasonable conduct.

furthermore, they are chancing their arm, the N260 is not really applicible for small claims track anyway, as it states on the header as you point out

I would object to costs full stop even if they did win

Too right. Serving any schedule of costs on a LIP is intended to intimidate - the judge should be made aware. The winning party is subject to limited set costs.