Akhtar v Boland: Costs Game-Changer - Matthew Hoe, Jaggards & Taylor Rose Law
15/08/14. The Court of Appeal’s decision in Akhtar v Boland [2014] EWCA Civ 872 is at first blush only about the appropriate track for a low value claim. But it has wider implications. In confirming that ‘any amount not in dispute’ when determining the value of a claim for allocation purposes is wider than expressed in PD26, the Court of Appeal has also confirmed that paying parties have a valuable mechanism for further limiting the recoverable costs of claims. Potentially, the judgment will also have the effect of making litigation in low value claims uneconomical for receiving parties’ solicitors.
Background to the decision
In Akhtar, the court had allocated the claim to the small claims track on the strength of admissions made by the defendant. They were partial admissions of distinct heads of claim set out in the defence. The claimant applied to re-allocate to the fast track. The district judge at first instance dismissed the application. The circuit dismissed the claimant’s appeal, as did the Court of Appeal (save as to costs, holding the allocation to the small claims track also prevented allowance of appeal costs).
The allocation to the small claims track was made on the basis that after the admissions, for which judgment was entered, the amount in dispute by the time of allocation was...
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