High Court Overturns Costs Order: Why Proper Legal Authorisation Matters

A recent High Court case shows how important it is for clients to know who is handling their litigation and how mistakes in this area can affect costs. Former clients of a City law firm challenged a costs order of more than £10,000 after discovering that a lawyer working on their case at another firm did not hold a current practising certificate.

Although the firm itself was authorised, the court ruled that this individual was not entitled to conduct litigation, even under the supervision of a qualified solicitor. On appeal, the High Court overturned the costs order. The judge found the earlier decision had been wrong to treat the lawyer’s role as legitimate, and also held that the costs awarded far exceeded what was permitted for this type of case.

What This Means for Clients in Litigation

This decision highlights several important points for anyone involved in litigation:

Only authorised individuals can conduct litigation

• A practising certificate is essential. Employment by a regulated law firm or supervision by a qualified solicitor is not enough.
• Unqualified staff may assist, but they cannot take the lead in conducting litigation.

Costs can be challenged

• If unauthorised individuals are involved in running a case, costs orders linked to their work may be open to challenge.
• Courts will also look closely at whether costs comply with the fixed limits for the type of case involved.

Fairness is central

• The High Court emphasised fairness: clients should not face significant costs if the other side relied on someone who was not properly authorised.

How Hegarty can help

The ruling makes it clear that only qualified, authorised professionals can conduct litigation. For clients, it’s a reminder to stay alert to who is representing you and also reassurance that courts are willing to step in when costs are imposed unfairly.

At Hegarty, we ensure that all litigation is conducted only by qualified, authorised professionals with the right practising certificates. This protects our clients from the risks highlighted in this case and gives confidence that their matter is handled to the highest professional standards.

If you are facing a costs order, or have concerns about whether your case has been managed correctly, our experienced litigation team can review the situation and advise on whether there are grounds to challenge costs or appeal decisions. We are committed to providing clear, practical guidance so you understand both your rights and your options at every stage.

Practical Tips When Engaged in Litigation

• Check who is handling your case - Ask your law firm to confirm that those conducting litigation hold current practising certificates.
• Review costs orders carefully - If you are asked to pay the other side’s costs, make sure they comply with the correct track limits and that the work was done by authorised individuals.
• Seek advice promptly - If something looks wrong, you may have grounds to appeal or resist payment.