It is surprising how often cases that have been looked at because of issues in relation to the evidence at trial are reported again on the issue of costs. The Ocensa Pipeline Group Litigation case is such an action. I have looked at it earlier* in relation to the evidential issues. There is now a...
So Leigh Day brought a case that turned out to be hopeless and forced the defendants to incur £34m in costs, where both sides knew that the most the defendants could hope to recover if they successfully defended the claim was a measly £1.8m through the ATE policy.
It seems quite clear that Leigh Day were attempting to use this threat of huge irrecoverable costs to extort a settlement from the defendants, and that they persisted in pursuing a case that appears to have been based on evidence that they had put forward with little regard to its truth.
No doubt they were hoping for another Trafigura type pay day, and I’m extremely pleased that the defendants had the guts (and the resources) to stand up to them.
In the circumstances one wonders whether a wasted costs application might not be appropriate.