The judgment of His Honour Judge Hodge QC in Meadows -v- La Tasca Restaurants Limited [2016]EW Misc B28 (CC) (16 June 2016) is now available on Bailli. It contains some important observations about findings of fundamental dishonesty.
"In my judgment, the inconsistencies and curiosities highlighted...
Are the Claimant’s appeal costs protected from offset? I imagine they are as the appeal would be considered separate proceedings and the costs of the action were awarded to the Defendant in the original action.
That is a very interesting question. QOCS can continue to apply to appeal https://civillitigationbrief.wordpress.com/2016/05/26/qocs-continue-to-apply-on-appeal-high-court-decision/ but I am not sure whether they would apply where a claimant was appealing in relation to a fundamental dishonesty finding and the judge upheld the original finding.
I appreciate that the Defendant may only enforce without permission to the extent of recovered damages (in this case £nil) but I imagine they would feel particularly sore having an unenforceable costs order and in addition, being required to satisfy appeal costs with no right of offset. Ordinarily CPR r 44.12 would apply, but can it where QOCS are engaged?
Kerry Underwood has written about this very https://kerryunderwood.wordpress.com/2016/10/11/qocs-appeals-set-off-kafka/
I’ve posed the same question to Kerry; I think its a clear tension in the rules but fortunately I don’t think the scenario will arise very often.