COST BITES 285: DOES THE COURT NEED TO VARY THE RECEIVING PARTY’S BUDGET WHEN IT HAS ORDERED THAT COSTS BE PAID ON AN INDEMNITY BASIS?
We are looking again at the award of indemnity costs. The judge ordered that costs be paid to the claimant on the indemnity basis. He then went on to consider whether, given that decision, it was necessary to retrospectively vary…
COST BITES 284: DEFECTIVE WITNESS STATEMENTS PLAY A PART IN A DECISION TO AWARD INDEMNITY COSTS: “DEPRIVING THE DEFENDANT OF THE USUAL RIGHT NOT TO PAY DISPROPORTIONATE COSTS, IS AN ENTIRELY PROPORTIONATE RESPONSE TO THE DEFENDANT’S CONDUCT OF THIS ACTION”
Here we look at a judgment where indemnity costs were awarded against an unsuccessful defendant. As we shall see there were a number of factors in that decision. However it is notable that, in both judgments, the judge commented on…
INDEMNITY COSTS ORDERED AGAINST SOME (BUT NOT ALL) CLAIMANTS: A NUANCED HIGH COURT DECISION
We are returning to the same case as the previous post but looking at a different issue. The judge considered whether to make an order for indemnity costs against the claimants. The case is unusual in that such an award…
MAKING ALLEGATIONS OF DISHONESTY DOES NOT AUTOMATICALLY LEAD TO AN ORDER FOR INDEMNITY COSTS: BUT IT MIGHT DO: COURT OF APPEAL DECISION
I am grateful to both Kevin Latham and Andrew Buchan for pointing out the judgment of the Court of Appeal in Thakkar & Ors v Mican & Anor [2024] EWCA Civ 552. The court held that a judge had acted…
PART 36, WITNESS STATEMENTS, INDEMNITY COSTS AND CONDUCT: READ ALL ABOUT IT
In Duke of Sussex & Ors v MGN Ltd (Re Costs) [2024] EWHC 274 (Ch) Mr Justice Fancourt made some complex costs orders in relation to the litigation. However the fundamental point was that parties that the claimants that failed…
MAKE UNJUSTIFIED ALLEGATIONS IN A LETTER OF CLAIM AT YOUR PERIL – YOU CAN PAY THE COSTS: ON AN INDEMNITY BASIS
The judgment of Deputy Master Nurse in Stubbins Marketing Ltd & Ors v Rayner Essex LLP & Anor [2023] EWHC 515 (Ch) contains an important lesson for anyone drafting a letter of claim. The judge ordered that the claimants pay…
COST BITES 7: INDEMNITY COSTS WHEN A CLAIMANT HAS TRIED TO HAVE A SECOND BITE OF THE LITIGATION CHERRY
In Tinkler v Esken Ltd (Costs) [2022] EWHC 1802 (Ch) Mr Justice Leech ordered indemnity costs against a claimant who, in essence, attempted to relitigate a case he had lost on previously. “A principal difference between an order for…
THE RULES ABOUT WITNESS STATEMENTS “SHOULD NOT BE USED AS A WEAPON FOR THE PURPOSE OF BATTERING THE OPPOSITION”: COMMONSENSE MUST BE USED: APPLICANT ORDERED TO PAY 75% OF THE RESPONDENTS’ COSTS ON THE INDEMNITY BASIS
In Curtiss & Ors v Zurich Insurance Plc & Anor (Costs) [2022] EWHC 1514 (TCC) HHJ Keyser QC (sitting as a Judge of the High Court) ordered the applicant to pay 75% the respondents’ costs on the indemnity basis. The…
INDEMNITY COSTS IN PUBLIC LAW PROCEEDINGS: FAILURE BY THE EXECUTIVE TO COMPLY WITH CONSENT ORDER TAKES THE CASE OUT OF THE NORM
In Butt, R (on the application of) v Secretary of State for the Home Department (Indemnity costs) [2022] UKUT 69 (IAC) the Upper Tribunal found that it had power to order indemnity costs, further, on the facts of this case…
LATE WITNESS STATEMENTS AND THE ASSESSMENT OF COSTS: COSTS REDUCED EVEN WHEN THEY WERE ON THE INDEMNITY BASIS
There are two distinct issues arising from the judgment of HHJ Pelling QC (sitting as a High Court judge) in Various Airfinance Leasing Companies & Ors v Saudi Arabian Airlines Corporation [2021] EWHC 3509 (Comm). The first relates to the…
THE SOLICITORS DISCIPLINARY TRIBUNAL CAN AWARD COSTS ON THE INDEMNITY BASIS: APPEAL ON THIS ISSUE COMPROMISED
In October 2020 I wrote about the case of SRA -v- Ahmud where the Solicitors Disciplinary Tribunal were highly critical of the steps taken by the SRA in investigating and bringing a claim alleging dishonesty. That case has a short coda in…
A SUMMARY ASSESSMENT OF COSTS: HOW IT WORKS IN PRACTICE: THERE IS NO POINT ARGUING ISSUES OF PROPORTIONALITY WHEN INDEMNITY COSTS HAVE BEEN ORDERED
Whenever I report on an assessment of costs, for reasons that can only be guessed at, that post is always widely read. The judgment of HHJ Davis-White QC in Goodwin v Avison & Ors [2021] EWHC 2754 (Ch) involves…
“THERE IS A WORRYING TREND… IN TERMS OF FAILURE BY EXPERTS GENERALLY IN LITIGATION COMPLYING WITH THEIR DUTIES”
There is an important point about a litigant’s responsibility for the conduct of their own experts (and expert’s conduct generally) in Beattie Passive Norse Ltd & Anor v Canham Consulting Ltd (No. 2 Costs) [2021] EWHC 1414 (TCC). This was…
INDEMNITY COSTS DO NOT AMOUNT TO A BLANK CHEQUE: EVEN IN LARGE CASES
In Louis Dreyfus Company Suisse S.A. v International Bank of St. Petersburg (Joint-Stock Company) [2021] EWHC 1039 (Comm) Mr Justice Calver reduced a claim for costs substantially, even though costs were being awarded on the indemnity basis. “it may…
COSTS, CONDUCT AND ASSESSMENT ON THE INDEMNITY BASIS: £2 MILLION SPENT TO RECOVER £40,666.47
An earlier post looked at the construction of the Part 36 offer in Kings Security Systems Ltd v King & Anor [2021] EWHC 653 (Ch) Andrew Lenon Q.C. (sitting as a Deputy Judge of the Chancery Division). Here we look at…
WHAT HAPPENS IF YOU DON’T SETTLE AFTER A MEDIATION: NO ISSUE BASED ORDER, INDEMNITY COSTS AND £127,000 ON ACCOUNT OF COSTS
There is much for litigants and litigators to learn from the judgment on costs of James Mellor QC (sitting as a High Court judge) in Cranstoun & Anor v Notta [2021] EWHC 133 (Ch). The dangers of rejecting offers of…
INDEMNITY COSTS AFTER A JUDGMENT DEBTOR WAS EXAMINED: IN ADDITION THERE IS GOING TO BE A SECOND MATCH…
In Shearer v Neal [2020] EWHC 3148 (QB) Deputy Master Hill QC ordered that a debtor pay costs on the indemnity basis after she heard a Part 71 hearing. The case was also remitted to the High Court Judge on…
DEFENDANT’S CONDUCT OF THE CASE LED TO INDEMNITY COSTS BEING PAID: MAKING ALLEGATIONS OF “NOT ACTING IN GOOD” FAITH: A SPECULATIVE & WEAK CASE: EXPERTS WITH A CONFLICT OF INTEREST
This is the third (but not the last) look at the judgment on costs in Essex County Council v UBB Waste (Essex) Ltd (No. 3) [2020] EWHC 2387. The judge held that the defendant’s conduct of the case was such that…
“OUR CASE WAS SO HOPELESS YOU SHOULD HAVE APPLIED TO STRIKE US OUT”: LOSING PARTY SHOULD PAY THE COSTS OF CLAIMANTS PURSUING SPECULATIVE CLAIM: YOU CAN’T HAVE YOUR CAKE AND EAT IT
The judgment of Mrs Justice Lambert today in Bailey & Anorv Glaxosmithkline UK Ltd [2020] EWHC 1766 (QB) reflected the normal rule that the losing party should pay the costs of an action. In this case the losing party was…
CLAIMANT BEATS OWN PART 36 OFFER: DEFENDANT ORDERED TO PAY INDEMNITY COSTS FOR AN EXTENDED PERIOD BECAUSE OF ITS CONDUCT
I am grateful to Sam Hayman from Bolt Burdon Kemp for drawing my attention to the decision today of Mr Justice Griffiths in DSN v Blackpool Football Club Ltd [2020] EWHC 670 (QB). The defendant was ordered to pay indemnity…
INDEMNITY COSTS ON THE GROUNDS OF CONDUCT: FAILURE TO BEAT A DEFENDANT’S PART 36 OFFER: A GARDEN THAT GETS MORE AND MORE EXPENSIVE…
The Court of Appeal decision in Lejonvarn v Burgess & Anor [2020] EWCA Civ 114 is the second time this case, about a garden, has been on appeal. On this occasion the Court of Appeal held that the claimants’ conduct…
ARGUE A WEAK CASE ON EACH AND EVERY POINT, GET INDEMNITY COSTS AWARDED AGAINST YOU
In Suez Fortune Investments Ltd & Anor v Talbot Underwriting Ltd & Ors [2019] EWHC 3300 (Comm) Mr Justice Teare held that a claimant, who had pursued a weak case in a robust manner, should pay indemnity costs. There is…
UNWARRANTED FRAUD ALLEGATION LEADS TO INDEMNITY COSTS BEING AWARDED
In Natixis SA v Marex Financial & Ors [2019] EWHC 2549 (Comm) an award of indemnity costs was made against a party who had alleged fraud all the way up to closing submissions. It highlights the dangers of pleading fraud…
COURT OF APPEAL REFUSES APPEAL AGAINST ORDER FOR INDEMNITY COSTS: PARTIES WHO ARE JOINED TO A SPECULATIVE ENTERPRISE IN LITIGATION SHOULD EVALUATE THEIR POSITION WITH CARE
In Ford & Anor v Bennett & Anor [2019] EWCA Civ 1604 the Court of Appeal dismissed an appeal against a trial judge’s decision to award indemnity costs. The judgment contains a lesson to “additional parties” to litigation. “Parties who…
AN OFFER THAT IMPOSES A CONDITION AS TO COSTS IS NOT A VALID PART 36 OFFER: MERE FAILURE TO ACCEPT REASONABLE OFFER DOES NOT LEAD TO INDEMNITY COSTS
In Knight & Anor v Knight & Ors (Costs) [2019] EWHC 1545 (Ch) HHJ Paul Matthews (sitting as a High Court Judge) held that an offer that attempted to limit costs was not a valid Part 36 offer. The judge…
“THE CLAIMANTS MUST RUE THE DAY THEY REJECTED THE DEFENDANT’S OFFER”: CLAIMANT TO PAY STANDARD COSTS AFTER REJECTING VERY EARLY PART 36 OFFER
The costs judgment in Burgess & Anor v Lejonvarn [2019] EWHC 369 (TCC) is probably a judgment that should be shown to all litigants. The claimant rejected an offer of £25,000 and failed to beat that offer at trial. The defendant’s…
INDEMNITY COSTS: CAN BE AWARDED WHEN CLAIMANT DISCONTINUES FOUR DAYS INTO A SIX WEEK TRIAL
In Hosking & Anor v Apax Partners LLP & Ors [2018] EWHC 2732 (Ch) Mr Justice Hildyard awarded indemnity costs in a case where the claimant discontinued four days into a six week trial. “My assessment is that this was high-risk…
INDEMNITY COSTS AGAINST CLAIMANTS IN GROUP LITIGATION ORDER: INDEMNITY COSTS APPROPRIATE: AN EXHAUSTING READ
The judgment of Master Fontaine in The VW NOx Emissions Group Litigation [2018] EWHC 2308 (QB) is a warning to any litigator thinking of applying for a Group Litigation Order (“GLO”). The rule is clear basically – get your case in…
CLAIMANT OBTAINS INDEMNITY COSTS AFTER DEFENDANT’S LATE ACCEPTANCE OF PART 36 OFFER: “BIMBLING” AND OTHER TALES OF MODERN LITIGATION
On the Leigh Day website there is a link to a judgment of H.H.J Alan Gore QC (sitting as a High Court Judge) in the case of Holmes -v- West London Mental Health NHS Turst (29th June 2018). The judge…
SHAMEFUL LETTERS, LATE DISCONTINUANCE, INDEMNITY COSTS (AND A REFUSAL TO MEDIATE HARDLY COUNTS): THE CLAIMANT WHO LOST SIGHT OF “ANY BASIC STANDARD OF DECENT & COMPASSIONATE BEHAVIOUR”
Earlier posts have looked at the issue of aggressive correspondence. Others have looked at the issues of conduct, refusal to mediate and questions relating to indemnity costs. I am grateful to David Turner QC for drawing my attention to a…
MAKING UNWARRANTED ASSERTIONS LEADS TO INDEMNITY COSTS – AGAINST A SECRETARY OF STATE
There are numerous cases where the courts have considered conduct that leads to indemnity costs. In Secretary of State for the Home Department v Barry [2018] EWCA Civ 790 the Court of Appeal found that the Home Department’s conduct of an…
COURT OF APPEAL STATES INDEMNITY COSTS SHOULD HAVE BEEN AWARDED: SHOULD HAVE BEEN MORE BULLISH IN BRADFORD…
It is unusual for the Court of Appeal to interfere with a discretionary order in relation to costs. It is even more unusual for the court to replace an order for costs on the standard basis with indemnity costs. This…
CLAIMANT ACCEPTING PART 36 OFFER LATE: COURT ORDERED INDEMNITY COSTS FOR THE PERIOD BETWEEN EXPIRY AND ACCEPTANCE
In Lokhova v Longmuir [2017] EWHC 3152 (QB) Mr Justice Warby considered the court’s discretion when a claimant accepted a defendant’s Part 36 offer late. KEY POINTS A court had jurisdiction to vary the normal order for costs when a claimant…
COSTS AFTER DISCONTINUANCE VARIED: CLAIMANT TO PAY INDEMNITY NOT STANDARD COSTS: TWO RIGHT FEET BROUGHT THE WRONG ACTION
When a claimant discontinues an action there is an automatic provision that the claimant pay the defendant’s costs (CPR 38.6). In Two Right Feet Ltd v National Westminster Bank Plc & Ors [2017] EWHC 1745 (Ch) Ms Sara Cockerill Q.C. made…
COSTS AFTER LATE ACCEPTANCE OF A DEFENDANT’S PART 36 OFFER: CLAIM £21.5 MILLION, ACCEPT £125,000: THE IMPORTANCE OF CLEAR VISION ON DAMAGES FROM THE OUTSET
In Optical Express Ltd & Ors v Associated Newspapers Ltd [2017] EWHC 2707 (QB) Mr Justice Warby considered arguments in relation to costs after late acceptance of a Part 36 offer. On the facts of that case he ordered that the…
THE BANK OF IRELAND CASE ROUND TWO: APPROPRIATE SUMS FOR AN INTERIM PAYMENT ON ACCOUNT OF COSTS: INDEMNITY COSTS ORDERED BECAUSE OF CONDUCT OF EXPERT
In an earlier post we looked at the judgment in Bank of Ireland -v- Watts Group PLC [2017]EWHC 1667 (TCC) where Mr Justice Coulson was particularly excoriating about the claimant’s expert. Having lost the case the bank had to pay the…
SENSIBLE CONCESSIONS PLAY NO PART IN THE ORDERING OF INDEMNITY COSTS: ORDER MADE ON MERIT
I have written about the substantive judgment in Imperial Chemical Industries Limited -v- Merit Merrell Technology Limited [2017] EWHC 1763 (TCC) several times already. There is a shorter judgment on costs at Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd [2017] EWHC…
A GOOD REASON WHY YOU SHOULD LOVE (OR AT LEAST MEDIATE WITH) THY NEIGHBOUR: INDEMNITY COSTS OF £200,000
The Court of Appeal judgment in Dickinson & Anor v Cassillas [2017] EWCA Civ 1254 serves as a warning for anyone involved in a neighbour dispute. The Court dismissed the appellants’ appeal in relation to findings against them after a trial….
YOU OFFERED ME £100,000: I’VE ACCEPTED £15,000- OH AND I WANT MY COSTS: THE DANGERS OF NOT NEGOTIATING AND WHY THE CLAIMANT HAD TO PAY INDEMNITY COSTS
I tried to summarise the judgment of Mr Justice Mann in Jordan -v- MGN Limited [2017] EWHC 1937 (Ch) and I found it difficult. Every word of the judgment is important. It shows, at least, a very insouciant, approach by the…
CONSEQUENCES OF LATE ACCEPTANCE OF CLAIMANT’S PART 36 OFFERS: RECENT DEVELOPMENTS
There is a useful report on the PIC website of a case where a claimant obtained indemnity costs after the defendant’s late acceptance of its Part 36 offer The case of Car Craft Test Centre -v- Trotman a decision by…
APPLICATION FOR INDEMNITY COSTS REFUSED: THE JUDGE LOOKS AT THE COSTS BUDGET OF THE LOSING PARTY
We have looked many times at cases where judges have considered granting indemnity costs. This issue was considered by Mr Justice Coulson in MacInnes -v- Gross [2017]EWHC 127 (QB). One interesting aspect is that the judge looked at the losing…
INDEMNITY COSTS ORDER AGAINST DEFENDANT UPHELD BY COURT OF APPEAL: OFFERS AND CONDUCT: MANNA II
The second post on the Court of Appeal decision in Manna -v- Central Manchester Hospitals NHS Trust [2017] EWCA Civ 12 relates to the Court’s upholding of the trial judge’s award of indemnity costs. “A judge should in my view be…
COSTS, INDEMNITY COSTS AND THE EXPENSIVE CONSEQUENCES OF A SIEGE BASED MENTALITY
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…
COSTS AT THE END OF A CASE: INDEMNITY COSTS, PAYMENTS ON ACCOUNT AND GOING BEYOND THE COSTS BUDGET
In Barkhuysen -v- Hamilton [2016] EWHC 3371 (QB) Mr Justice Warby considered matters relating to costs after a trial. The defendant’s conduct led to an order for indemnity costs being made. The judge also identified those areas in which the claimant…
PART 36 CONSEQUENCES AND A FIXED COSTS REGIME: WHAT HAPPENS WHEN THEY MEET?
In the judgment today in Phonographic Performance Ltd -v- Raymond Hagan [2016] EWHC 3076 (IPEC) Judge Hacon considered the interaction between a fixed costs regime and Part 36. KEY POINTS The fixed cost rules in the Intellectual Property Enterprise Court…
THIRD PARTY FUNDING: YOU WANT THE PROFITS YOU TAKE THE RISKS: EXCALIBUR IN THE COURT OF APPEAL
In Excalibur Ventures LLC -v- Texas Keystone LLC [2016] EWCA Civ 1144 the Court of Appeal confirmed that commercial funders are liable to indemnify on the indemnity costs basis. “I can see no principled basis upon which the funder can…
LATE ACCEPTANCE OF CLAIMANT'S PART 36 OFFERS: TWO CONTRASTING CASES & THE GREAT DEBATE
There is an ongoing debate about whether the Defendant should, or does, face any adverse consequences when a Claimant’s Part 36 offer is accepted late. I had a recent email from solicitor John McQuater of Atherton Godfrey. Here I…
PROVING THINGS 20: ALLEGATIONS OF IMPROPER CONDUCT HAVE TO BE PROVEN: INDEMNITY COSTS ORDERED
In Collins -v- Thanet District Council Collins anor v Thanet DC anor (19 4 16)(Jud) 2 [2016] EWHC 1008 (QB) His Honour Judge Yelton (sitting as a Judge of the High Court) considered the evidence available to support allegations of misfeasance…
PART 36 OFFER DID NOT ENCOMPASS PAYMENT ON ACCOUNT: COSTS ON THE INDEMNITY BASIS: A BAD DAY AT THE OFFICE
The Court of Appeal decision yesterday in Littlestone -v- Macleish [2016] EWCA Civ 127 deals with important elements of Part 36 offers. Not least the importance of stating, with absolute clarity, whether an offer is exclusive or inclusive of previous…
IS THIS A CLAIMANT'S OR DEFENDANT'S OFFER? ANOTHER IMPORTANT HIGH COURT DECISION ON PART 36
In Van Orrd Uk Limited -v- Allseas UK Limited [2015] EWHC 3385 (TCC) Mr Justice Coulson considered the appropriate consequences when the defendant had beaten its own Part 36 offer. These were unusual circumstances in that the court had to…
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