Court rejects firm's sums to fund challenge over fees

Court rejects firm's sums to fund challenge over fees

Appeal: Hammonds battles company to pay security on costs

The Court of Appeal last week cast doubt on the costs national firm Hammond Suddards Edge estimated it would incur in an appeal over unpaid fees.The firm is being sued by a former client, Virgin Islands-registered company Agrichem International Holdings, which used Hammonds to sue a Spanish company it alleged was in breach of contract.The action failed, resulting in Agrichem paying indemnity costs.

The company withheld payment of Hammonds' fees, alleging negligence, but has brought no legal action.

Hammonds subsequently sued for its fees, and won at first instance.

Agrichem is now appealing.In the Court of Appeal, Hammonds argued that Agrichem should pay security for its costs on the appeal - but Mr Justice Silber was wary of both sides' estimated costs for the action.Hammonds argued it would cost 111,855, based on charging partners at 330, and assistants at between 180 and 270 each hour.Agrichem said that the case would cost Hammonds 60,000-65,000, on the indemnity basis.Taking both sides' estimates with a pinch of salt, Mr Silber said: 'There are only two certainties.

The first is that neither the respondent's nor the appellant's figures will prove correct, and the second is that the respondent's figure is likely to be too high, and the appellant's figure is likely to be too low.'Granting the security, Mr Silber settled at an estimate of 85,000.

Fladgate Fielder, acting for Agrichem, and Lovells, acting for Hammonds, declined to comment.Jeremy Fleming