Fun facts about hourly rates
1. The modern hourly rate was invented by a man called Reginald
See Herber Smith, R, Law Office Organisation (1940) 26 ABA Journal 393. Also see Baker, R, Implementing Value Pricing (Chichester: John Wildy & Sons, 2010, pp 116, et seq).
2. GHR’s say nothing about the market
The 2021 GHRs are (predominantly) based on a survey of what judges allow on assessment rather than on the monies that solicitors charge clients; this is a significant change of emphasis.
3. The intention is to review GHRs on a regular basis
4. GHRs are longer limited to summary assessments
See the Guide to the Summary Assessment of Costs 2021, para 28.
5. The City of London is no longer a place
‘London 1’ is now defined as ‘very heavy commercial and corporate work by
centrally based London firms … not restricted to any particular London postcode: see the Guide, para 29 and Appendix 2, page 17.
6. A ‘clear and compelling justification’ may be required to exceed GHRs
See Samsung Electronics Co Ltd v LG Display Co Ltd [2022] EWCA Civ 466 at [4]–[6], per Males LJ; also see Various Airfinance Leasing Companies & Ors v Saudi Arabian Airlines Corporation [2021] EWHC 3509 (Comm), per Judge
Pelling QC (sitting as a Judge of the High Court) (similar conclusion where costs were payable on the indemnity basis). Probably applies only to ‘City’ rates.
7. The Giambrone approach is now official
See the Guide, para 29.
8. Solicitor advocates may be limited to counsel’s rates
See the Guide, para 34.
9.Unqualified fee earners can be any Grade of Fee Earner
See the Guide, Appendix 2, eighth para; also see Paturel v Marble Arch Services Ltd [2005] EWHC 1055 (QB) (Grade B rate for an unqualified fee earner with 15 years of litigation experience).
10. Employed barristers can be any Grade of fee earner
See the Guide, Appendix 2, sixth para.
11. Costs lawyers are no longer Grade D fee earners
See the Guide, Appendix 2, fifth para.
12. Charging too high an hourly rate can land you in hot water
See Solicitors Regulation Authority v Good [2019] EWHC 817 (Admin) (solicitor tried to justify charging £400 ph for clinical negligence in 2013 in Hull to ‘test the rates’).
