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England and Wales High Court (Senior Courts Costs Office) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Senior Courts Costs Office) Decisions >> Ryan v Dunscrest Ltd. [2004] EWHC 9006 (Costs) (07 May 2004) URL: http://www.bailii.org/ew/cases/EWHC/Costs/2004/9006.html Cite as: [2004] EWHC 9006 (Costs) |
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SUPREME COURT COSTS OFFICE
London, EC4A 1DQ |
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B e f o r e :
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GLYN PATRICK RYAN |
Claimant/ Appellant |
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- and - |
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DUNSCREST LIMITED |
Defendant/ Respondent |
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Mr Nicholas Bard (instructed by Lyndales) for the Defendant/Respondent
Mr John Gimlette instructed by the Legal Services Commission
Hearing dates : 12 and 25 March 2004
On Preliminary Issue
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Crown Copyright ©
i. the claim be struck out;
ii. judgment be given on the counterclaim (for £6,432.80);
iii. the Claimant to pay the costs, "in such sum if any as is determined under Section 11 of the Access to Justice Act 1999";
iv. the Claimant to pay the sum of £25,000 on account of the costs.
"A. Bias in, and/or misconduct of the hearings on 12-13 November 2001 (grounds 1-6, 16);B. The substantive orders made in the Appellant's absence on 14 November 2001 and confirmed on 20 December 2001 (grounds 7, 10, 11 and 12);
C. The orders as to costs and charging orders made on 14 November 2001 and modified on 20 December 2001 (grounds 8, 13 and 17)."
"As Applicant to be represented on an appeal to the High Court in an action between the funded client/assisted person and the opponent(s).Date work can commence on the above proceedings: 30/08/02."
"Limited to obtaining external counsel's opinion or the opinion of an external solicitor with higher court advocacy rights on the information already available."
"No other enclosures are provided, as in our view everything you need to make a decision is set out in Counsel's Advice.All of the documents we have refer to the Court of Appeal rather than the High Court, whilst we understand it has become practice on applications for permission to appeal for a single High Court Judge to sometimes hear the application, this does not seem to be the case in this instance and we understand that the application for permission to appeal is listed for hearing on 2 October 2002, before the Court of Appeal.
Please amend the certificate immediately so as to enable us to prepare for that hearing in line with Counsel's Advice."
"As Applicant to be represented on an appeal to the Court of Appeal in an action between the funded client/assisted person and the opponent(s).Date work can commence on the above proceedings 30/08/2002."
"Limited to all steps up to and including the hearing of an application for permission to appeal the order of 20 December 2001."
"On 30 September 2002 the Appellant was granted public funding to pursue his appeal against the Order of His Honour Judge Medawar QC dated 20 December 2001 (drawn 24 January 2002). The public funding excludes any grounds of appeal relating to bias and/or misconduct."
i. The Claimant's lawyers provide evidence in relation to the bias issue.
ii. The Defendant provide submissions on the costs issue.
"AND BY CONSENT IT IS ORDERED THAT:1. There shall be quashed and set aside the following provision of the order of His Honour Judge Medawar QC originally made on 14 November 2001 and re-drawn on 20 December 2001, a copy of which (as re-drawn) attached Minutes of Order marked "D", that:4. The Claimant do pay Defendant's solicitors the sum of £25,000 on account before the costs assessed and by a date or dates to be specified by the court in due course on application being made by the Defendant."2. There shall be quashed and set aside the further order of His Honour Judge Medawar QC made on 20 December 2001, a copy of which is attached to this Minute of Order marked "C".3. The Charging Order Nisi dated 20 December 2001 providing for a charge over the Claimant's property at Flat 3, 9 Malvern Road, Kilburn, London NW6 attached hereto marked "A" be varied and substituted with the Charging Order Nisi marked "B".
4. The Defendant is to pay the Claimant's costs arising out of Ground 8 of the Claimant's Notice of Appeal, to be assessed if not agreed on the standard basis, and set off against such costs as are due to the Defendant by reason of Lord Justice Buxton's Order of 10 December 2002.
5. There be a detailed assessment of the Claimant's costs pursuant to paragraph 4 of the Community Legal Services (Funding) Order 2000."
"what part of the costs directed by the Court of Appeal to be paid by the Claimant/Appellant to the Defendant/Respondent pursuant to the Order of … 10 December 2002."
"Further as funding was limited (which I understand was apparent from the skeleton argument produced by the assisted person's counsel) and as the costs order against the assisted person was in relation to the aspect that was not funded then pursuant to Regulation 5(4) of the [CLS (Costs Protection) Regulations 2000 as amended ("CP Regs")] you would not be entitled to include in your claim those costs as against the Commission. It is therefore clear that any application against the Commission would not succeed."
"Under normal circumstances we think you would accept that in supporting the Claimant in his appeal the Legal Services Commission would expect to be responsible to pay the costs of an appeal which was lost. In this case, apparently the Legal Services Commission, so you now tell us, gave only a very limited legal aid certificate for the purposes of the appeal against the County Court costs order, and it was Mr Ryan who apparently extended the appeal to other aspects of his Notice of Appeal.We understand from you that it is your case that the court should not require the Legal Services Commission to pay any part of the costs of the appeal which was not supported by you and you wish to be heard in that respect. Indeed, we believe it is your intention to intimate that Mr Ryan should not be considered as an assisted person in relation to any aspect of the appeal which was not funded by the Legal Services Commission."
"The Legal Services Commission have at last written to us when we pressed them to let us have an answer as to whether they wished to make an application to the court in relation to the order made by the Court of Appeal as to the apportionment of costs between your client and themselves.We have spoken to them on the telephone and as a result written them a letter a copy of which we enclose. They are concerned to be heard on the question of apportionment of the costs as between your client and them on the basis that the legal aid funding was limited to only that aspect of the appeal where your client was in effect successful. They are suggesting that there should be no responsibility for the costs of that part of the appeal which was the subject of the Order in December last. They will apparently maintain that, as your client recovered his costs, no order should be made against them.
We are therefore issuing an application which we think will have to be adjourned to the hearing of the assessment of the costs on both sides and we will also request directions …"
"We are wholly unclear at present as to whether the scope of our existing certificate will cover representation on the determination of costs issue so will not be in attendance on the 7th July 2003."
"The relevant limitation is that dated 30 September 2002 which limits funding to an application for permission to appeal only as against the order made on the 20th December 2001. It is also quite clear from the supplemental skeleton argument at paragraph 3 that the scope of the certificate was limited."
"because only then can it be determined who is liable to pay the Defendant's costs (to the extent ordered) in the Court of Appeal – and additionally only then can it be determined whether and to what extent the Claimant's legal advisers are entitled to payment for certain work performed in relation to the Court of Appeal hearings."
i. the detailed assessment hearing appointed for 12 March 2004 be vacated to be heard on a date to be fixed;
ii. the preliminary issue sought by the Defendant's Application be adjourned to be heard on 12 March 2004;
iii. the Claimant and the LSC provide standard disclosure relevant to the preliminary issue by 4 pm on 2 March 2004;
iv. a proper officer of the LSC must serve a Witness Statement in relation to the preliminary issue by 5 March 2004;
v. the Claimant must serve any evidence relevant to the preliminary issue by 10 March 2004;
vi. …
vii. costs reserved.
"27. When construing the scope of the funding certificate the court will have regard to the rules of construction. Though the object of construction is to ascertain the intention of the parties, however the question is not what the party construing the document meant or understood by the words, but "the meaning which the document would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation …" (Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896, 912). Further principal of construction is that the fact that a document is badly drafted is no reason to depart from the normal rules of construction." (Sinchem International Oil (London) Co Ltd v Mobil Sales and Supply Corp [2000] 1 Lloyds Rep 339, 334).
"26. The Preliminary Issue is of vital importance to the Claimant as if he has cover for the entire appeal proceedings, his personal liability is restricted and if not then he is personally liable for costs (CLS (Costs Protection) Regulations 2000). The Claimant has always maintained that he had funding for the entire appeal proceedings."
"the limit on costs awarded against a client set out in Section 11 of the AJA".
"30. The issue is of critical importance. If the Claimant had public funding (a) he has costs protection and his personal liability is restricted (s11 AJA) and (b) the LSC are potentially liable to the Defendant for the costs awarded against the Claimant (see CLS (Costs) Regulations 2000, reg 5(2)). 31. Proceedings may be divisible; some parts have costs protection, others don't. Reg 5(4) states "where the client receives funded services in connection with part only of the proceedings, the reference in paragraph (2) to the costs incurred by the non funded party in relevant proceedings shall be construed as a reference to so much of those costs as is attributable to the part of the proceedings which are funded proceedings"."
"4. The entire history of the funding is not relevant to determine the application before the court and therefore I do not propose to recite it here. The relevant background in my view is summarised below:(i) 14 November 01 His Honour Judge Medawar first made order striking out the Claimant's claim and awarded costs to the Defendant and further that £25,000 be paid to the Defendant on account of costs. This order was originally drawn on 2 December 01.(ii) On 20 December His Honour amended substantially the order of 14 November 01 and also made an Order concerning enforcement of costs. As a result two orders were drawn both shown as having been made on 20 December 01.
(iii) The substantive order was re-drawn again on 24 January 02, however the date of the order was still shown as 20 December 01."
"and also made an order concerning enforcement of costs."
"28. At the date of the appeal the Claimant had the benefit of the funding certificate which stated to cover the appeal of the order of 20 December 01. The Claimant says that covered the entire appeal on the following grounds.(a) The Order made on 14 November 01 and drawn on 2 December 01, was amended substantially on 20 December 01, it is important to note also that the preamble to the order of 20 December 01 gave leave to amend the order of 14 November 01. It is submitted that the order of 14 November was either subsumed or was perfected on 20 December 01.(b) When the order made on 14 November 01 was re-drawn it was not only dated as 20 December 01 it was shown as having been made on 20 December 01 together with the order of enforcement of costs.
(c) On 24 January 02 the order given on 14 November but amended and re-drawn on 20 December 01 is re-drawn again, however the date on which the order was made was still shown as 20 December 01.
(d) At the date of the funding application therefore, there were two orders of 20 December 01, but both being referred to as order of 20 December 01."
"32. The wording of the certificate is crucial. At the date of the appeal, the Claimant had public funding "to appeal the order of 20 December 2001". Which order does this refer to? There are two possibilities:(1) the order made on 14 November 2001 (and dated 20 December 2001), dealing with merits and costs;33. The Claimant says it was (1) on the basis that, as an error made by the trial Judge in relation to costs emanated from the order made on 14 November, it was this order that was being appealed. He says that as this order was dated 20 December (albeit wrongly), it was this order that was being appealed, and thus the merits appeal was covered by the certificate. It is submitted this argument is flawed for reasons as follows.(2) the order made and dated 20 December 2001, dealing solely with costs.
34. First, no order was made in relation to the merits appeal on 20 December and everybody agrees that the draft order is wrongly dated.
35. Second, if it is the date the order was drawn that counts, the merits order was not ultimately drawn on 20 December in any event; it had to be corrected again and was re-drawn on 24 January 2002. Its connection with "20 December" was therefore not only wrong but transitory.
36. If the certificate is to be regarded as referring to the day the order was drawn rather than the day it was actually made, it would have referred to the order of 24 January 2002. This after all was the draft order (on the merits) which was extant at the time the certificate was issued.
37. Third, where the certificate refers only to one order (singular) and a question arises as to whether this refers to either (a) an order made and drawn on a certain date or (b) an order merely drawn on that date, it makes no sense to interpret the certificate as referring to the latter to the exclusion of the former (and there is no scope for saying that both orders came within the scope of the certificate) NB the logical effect of the Claimant's present submissions is that he did not have funding to appeal the costs order that everyone agrees was made and dated 20 December.
38. Fourth, the fact that the unlawful costs order emanated from the earlier order (14 November) does not mean that it was that order rather than a later enforcement order (20 December) that the certificate was intended to cover. Unlawful though it may have been in the first order, it was inchoate and of no consequence. It was only once it was enforced and became operative that an appeal was needed. Thus it was both logical and sufficient that the certificate only covered the enforcement stage of the unlawful order.
39. Fifth the Claimant's present contention that he had cover in relation to the merits issue (and not the costs issue?) is inconsistent with what the Claimant's lawyers understood to be the position at the time, they didn't think the LSC had extended funding to cover the merits appeal."
"15. To succeed on this ground the Court of Appeal would have to hold that the court wrongly exercised his discretion whether or not to strike out the claim. In the absence of any explanation for Mr Ryan's absence, the Court of Appeal is unlikely to criticise the Judge's decision. It would only be likely to overturn the decision if it accepted new evidence as to why he not only departed but also left without any representation. Stronger medical evidence, or an explanation from Mr Leech as to why he did not inform the Court of Mr Ryan's illness could be enough. At this stage, permission to appeal the striking out of the claim will only be given if the court considers that the uncertainty regarding the events of 14 November 2001 constitutes some other compelling reason to give permission to appeal."
It seems to me that a reasonable person seeing this advice would consider that the LSC (without further evidence which was not in fact provided) would not have given authority to appeal on the "merits" ground of appeal.
"The terms of cover provided must obviously be taken at face value, and the question of what specific work can be said to be covered will be a matter for justification on assessment of costs at the end of the day. The assessing officials will no doubt bear in mind, inter alia, the history of the matter and the relevance of particular aspects to the main proceedings."