GSD Law Ltd v Wardman & Ors

Facts

The appeal arose out of 14 personal injury claims in which the claimants had succeeded and become entitled to costs. GSD Law Limited was on the record for the claimants in nine of those cases and acted as agents for Sovereign Solicitors in the other five, working under conditional fee arrangements. GSD sent informal schedules of costs to the paying parties; when those were not agreed, formal bills were drawn and detailed assessment proceedings began. Mr Jon Williams, a costs lawyer instructed by the paying parties' insurer Allianz, raised concerns, and a document headed "Particulars of Allegations" alleging fraud and misconduct against GSD was served on 12 November 2012, asserting a systematic attempt to claim more in the without prejudice schedules than was properly claimable — inflated hourly rates, misleading representations as to fee earners' status, profit costs for work not done, overstated additional liabilities and a non-existent drafting fee. District Judge Bedford directed that the assessments be case-managed together with two sample cases and preliminary issues tried. After a hearing spanning three days, District Judge Neaves, sitting in the County Court at Leeds, found Ms Madhas, GSD's sole principal, to be a wholly unreliable and dishonest witness, held every allegation proved, disallowed all costs in the sample files under CPR 44.11 and ordered indemnity costs. His Honour Judge Gosnell dismissed GSD's appeal, and GSD appealed again with permission from McFarlane LJ.