Effective Use of Contractual Cost Clauses

Image: Amanda Marie/gdtography/Unsplash
Image: Amanda Marie/gdtography/Unsplash

Effective Use = Recoverability = Free Legal Service

Are you looking for legal services for your recoveries but concerned about costs?  At Greenhalgh Kerr we make recovering costs a priority for all of our clients.

What you need to know:-

Q/.        Does it matter if the claim is a small claim and subject to the fixed costs regime?

A/.        No, we will plead your case so that costs are recoverable in any event.

Q/.        What cost models do Greenhalgh Kerr offer?     

A/.        We will tailor our cost models to suit our client’s needs. We offer Fixed Fees and low blended hourly charge out rates below Law Society guideline rates.

Chaplair Ltd -v- Kumari [2015] EWCA Civ 798

The Court of Appeal ordered that where the terms of a lease include a contractual indemnity in respect of costs, this takes precedence over the rules set out in the CPR.

It held that the judge could use the terms of the lease to make an award for costs and was not bound by the costs fixed regime in the Civil Procedure Rules. The Court did still have discretion in deciding whether the landlord would achieve 100% recovery under the indemnity – here the court allowed approximately 90%.

CPR Part 44.5 – Amount of costs where costs are payable under a contract

(1) Subject to paragraphs (2) and (3), where the court assesses (whether by summary or detailed assessment) costs which are payable by the paying party to the receiving party under the terms of a contract, the costs payable under those terms are, unless the contract expressly provides otherwise, to be presumed to be costs which –

(a) have been reasonably incurred; and

(b) are reasonable in amount, and the court will assess them accordingly.

(2) The presumptions in paragraph (1) are rebuttable. Practice Direction 44 – General rules about costs sets out circumstances where the court may order otherwise.

(3) Paragraph (1) does not apply where the contract is between a solicitor and client.

How to use us and what you can expect:-

We would welcome a meeting with any prospective clients who wish to:-

  • Experience a high quality legal service,
  • Maintain control over the fees and legal spend,
  • Have access to our bespoke on-line portal,
  • Regular contact with your dedicated legal team, and
  • Bespoke reporting.

Please contact our Steven Owens on 0333 200 5205 or e-mail steven.owens@greenhalghkerr.com

Greenhalgh Kerr
Olympic House, Beecham Court,
Smithy Brook Rd,
Wigan WN3 6PR

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+44 (0)333 200 5200

We are confident in our work and we know that recoveries is a key part of a lender or creditor’s business

We are confident in our work and we know that recoveries is a key part of a lender or creditor’s business. We have designed our pilot projects to give lenders and creditors the comfort and confidence in our service before formally and fully switching recoveries providers. This time also allows new clients to benchmark our service levers and results against existing providers and others.

How it works


You choose 10 recoveries cases

You choose 10 recoveries cases to get us started. We’ll deliver our usual onboarding protocol where we’ll get to know you and your systems, culture, methods, preferences, and requirements.


We get started

We assess each case by setting a strategy then grading and reporting on the case in terms of prospects and timescales and cost. We make immediate contact with debtors, and pursue a recovery in our tried and tested ways.


We review

We deliver ongoing, structured, tailored reports as per your needs and carry out a full 3-month review on these 20 cases. There we’ll discuss how we have worked together, patterns we have seen in your borrowers, your systems, your documents, your pre-legal conduct, outcomes, highs and lows, legal costs (and costs borne by debtors), and possible improvements in all of these.


No strings

We carry on working in this way until all cases have been concluded. You are then free to carry on your discussions with us or to use the experience and market intelligence gained by working with us in the future.

Lenders and creditors have nothing to lose, and everything to gain, by engaging with us on a pilot project.