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Hassan Khan & Co & Anor v Al-Rawas & Anor [2020] EWHC B21 (Costs)

Consequences of the failure to make a payment on account of costs ordered, Days Healthcare orders

Hassan Khan & Co & Anor v Al-Rawas & Anor [2020] EWHC B21 (Costs) looks at the issue of an application for an unless Order to debar the paying parties from detailed assessment proceedings in a solicitor/client matter as a result of the failure to make a payment on account.  A payment had been ordered of £75,000 and the Claimant then sought a payment of £152,710 (half of the sum claimed).

Days Healthcare orders prevent a paying party from taking further steps in detailed assessment proceedings unless the ordered payment is made.  In that case the assessment proceeded with reference to the Points of Dispute alone, with the paying party debarred from the assessment hearing.

Master Leonard held, after hearing evidence as to the financial position of the Defendants, that the Claimant’s Days Healthcare application succeeded.  Notably, regard was given to the sums the Defendants had spent contesting the litigation, that the Defendants’ evidence was incomplete, unreliable and in certain aspects untrue, with there being no explanation for an earlier payment made by the Defendants to avoid consequences of a previous order that would have struck out their Points of Dispute.  The application for the increased payment on account was refused, given the earlier order for £75,000 to be paid.

A&M Bacon recently dealt with similar proceedings for a between the parties case, where the paying party sought relief from sanctions after failing to make payment in line with an agreed Days Healthcare style Order.

Read our report for that case here.   We were successful for the receiving party and the paying party was debarred from the subsequent detailed assessment proceedings.

The importance of cash flow and ensuring payments on account are made are a priority for us, but equally where your client is in the difficult position of not being able to make payment then we can advise and assist with the response to such application. 

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