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03 January 2008 / Virginia Rylatt
Issue: 7302 / Categories: Features , Legal services , Procedure & practice , Profession
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All Change

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MasterCigars has ushered in a new costs regime. Virginia Rylatt explains why

In MasterCigars Direct Ltd v Withers LLP [2007] EWHC 2733 (Ch), [2007] All ER (D) 385 (Nov) Mr Justice Morgan found for Withers in a landmark case that reassesses the effect of estimates, caps, margins and the Solicitors’ Costs Information and Client Care Code 1999. Given its importance, a full explanation of the facts of the case is given below.

On 6 May 2005, Withers wrote to MasterCigars Direct Ltd (MCD) giving an estimate of costs from 6 May 2005 to the end of the anticipated four-day trial which was due to start on 7 July 2005. The letter explained that:

 

“Although the figures are becoming relatively fearsome, it has to be said that the potential fees that might be added by bringing in Geoffrey Hobbs [barrister and QC at

One Essex Court
] are a heavy burden. However, they are guesstimates only in that we cannot ask his clerk for an estimate since they do

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