Aldwych Legal acted for James Carter, a commercial landlord based in Manchester, after his premises suffered serious flooding in February 2024. The dispute focused on recovering legal costs incurred in pursuing the claim, rather than damages to the property itself. The aim was a swift, cost-efficient resolution through a costs settlement agreement.
What Happened
The premises in Manchester suffered substantial flooding following a burst pipe linked to third-party negligence. The incident disrupted operations and required significant repair work. Our client sought to recover legal costs incurred in pursuing the matter, while delaying any protracted litigation.
We instructed Aldwych Legal and engaged in pre-action correspondence with the other party, seeking clarity on liability for costs and the potential for an amicable resolution.
Legal Issues
- Entitlement to recover legal costs in a property damage dispute within a settlement framework and CPR Part 43.
- Construction of a Costs Settlement Agreement under contract law and the Law of Obligations.
- Appropriateness of pursuing a costs-only settlement rather than full damages or litigation.
- Effect of the Civil Procedure Rules and Pre-Action Protocols on negotiations and settlement.
Our Approach
We prepared a detailed costs schedule reflecting the work performed, supported by contemporaneous time records and written summaries. Our team conducted pre-action steps including information requests, correspondence, and dispute-resolution negotiation under the CPR Pre-Action Protocols.
We negotiated with the opposing party, represented by a national firm, through a series of exchanges, setting out the justification for the costs claimed and offering a proportionate resolution to avoid court proceedings.
Outcome
After rounds of negotiation, the parties agreed a settlement of £7,000 payable to Aldwych Legal, covering the incurred legal costs. The agreement avoided court proceedings and ensured prompt payment to our client.
We also prepared a concise Costs Settlement Agreement detailing how and when payment would be made and how dispute costs would be apportioned.
Result / Why It Matters
Aldwych Legal’s pragmatic, client-focused approach in this flood-related costs dispute demonstrates our ability to secure swift, fair outcomes for commercial landlords while minimising disruption to business operations.
By combining contract law principles with practical negotiation and CPR compliance, we protected our client’s interests and demonstrated Aldwych Legal’s capability in commercial disputes.
