*British Airways plc v Prosser

Personal injury – Solicitors. Where the appellant (BA) had admitted liability for an injury sustained by the respondent employee at work, the Court of Appeal, Civil Division, ruled that the district judge had been entitled to allow the costs claimed by the respondent, including the VAT, regardless of whether a medical reporting organisation (AML), which the respondent's solicitors had commissioned to secure medical reports and records in relation to the respondent's claim, had actually been obliged to charge VAT as it had. The court, in dismissing BA's appeal, held that the district judge had been amply entitled to take the view that the sums claimed in the relevant invoices had been reasonably and proportionately incurred and reasonable and proportionate in amount, so as to satisfy the requirements of CPR 44.3, and that it was readily comprehensible that the district judge had not thought that it had been incumbent on the respondent's solicitors to investigate the VAT position. Guidance was given on when VAT could be charged in cases where solicitors, instructed on personal injury claims, had used the services of a medical reporting organisation.

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