Summary assessment of costs made in insolvency proceedings - permission to appeal required - correct approach to summary assessment

Hosking v Michaelides and another: ChD (Mr Justice Blackburne): 28 November 2003

The trustee in bankruptcy brought proceedings against the trustee and his wife seeking, among other things, an order for possession and sale of the couple's property.

The registrar made a summary assessment of costs in the course of those proceedings and the wife appealed that assessment.

Counsel was of the opinion that permission to appeal was not required since the assessment had been made in the course of insolvency proceedings.

Lucy Frazer (instructed by Holman Fenwick & Willan) for the trustee; David Stancliffe, (solicitor-advocate, Southcombe & Hayley) for the defendants.

Held, granting permission but dismissing the appeal, that where a summary assessment was being challenged, permission to appeal was required even if the assessment had been made in the course of insolvency proceedings; that the correct approach to summary assessments was to be found in Lownds v Home Office (Practice Note) [2002] EWCA Civ 365; [2002] Gazette, 10 May; [2002] 1 WLR 2450, under which the proportionality of the costs claimed should be considered, first globally, then on an item-by-item basis; and that, although the registrar had failed to apply the correct approach, the costs assessed were proportional.