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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Cutting v Islam [2014] EWHC 1515 (QB) (14 May 2014) URL: http://www.bailii.org/ew/cases/EWHC/QB/2014/1515.html Cite as: [2014] EWHC 1515 (QB), [2014] 4 Costs LO 652 |
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QUEEN'S BENCH DIVISION
Strand. London. WC2A 2LL |
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B e f o r e :
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MELISSA CUTTING |
Claimant |
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- and - |
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DR ASIM ISLAM |
Defendant |
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Claire Toogood (instructed by Berrymans Lace Mawer) for the Defendant
Hearing date: 6th May 2014
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Crown Copyright ©
Mrs Justice Patterson:
Introduction
The Facts
The Law
"2) If the court decides to make an order about costs -
(a) the general rule is that the unsuccessful party will be ordered to pay the costs of the successful party; but
(b) the court may make a different order."
"4) In deciding what order (if any) to make about costs, the court will have regard to all the circumstances, including -
(a) the conduct of all the parties;
(b) whether a party has succeeded on part of its case, even if that party has not been wholly successful; and
(c) any admissible offer to settle made by a party which is drawn to the court's attention, and which is not an offer to which costs consequences under Part 36 apply.
(5) The conduct of the parties includes -
(d) conduct before, as well as during, the proceedings and in particular the extent to which the parties followed the Practice Direction - Pre-Action Conduct or any relevant preaction protocol;
(e) whether it was reasonable for a party to raise, pursue or contest a particular allegation or issue;
(f) the manner in which a party has pursued or defended its case or a particular allegation or issue; and
(g) whether a claimant who has succeeded in the claim, in whole or in part, exaggerated its claim."
Who is the successful party?
Claimant's submissions
"In my judgment the valuable use of payments into, court and Part 36 offers to settle place an onus, in the first place, on the defendant. He had the ability to pay his fallback position into court and he could, if he took the view, have done so, confident that his greedy mother backed by his horrible brother Kevin would not have taken that money but would have fought him to the bitter end for the whole of the proceeds of sale, but that was his means of protecting his position. He failed to avail it, and it seems to me that that loses him the protection of the rules."
"The ultimate result of this litigation is that the claimant has succeeded on some of her heads of claim and has failed on others. The defendant could have protected itself by making an offer which would have exceeded the modest sum finally awarded by this court. The defendant did not make any offer of settlement — the claimant had to go to trial, indeed had to come to this court in order to recover any damages whatsoever. It is unsurprising and not unusual that the claimant did not succeed on all of her alleged breaches of duty or allegations of negligence. Looking at all the circumstances of this case, I do not consider that any discount should be made from the normal order for costs. Therefore I would order that the defendant do pay the claimant's costs of this action both below and of the appeal in this court and that such cost should be assessed on the standard basis if not agreed."
Defendant's submissions
"46. The starting point of the enquiry is as all accept to identify the successful party. Although there have been many attempts to describe this surprisingly elusive process, no description is in my view better than that of Sir Thomas Bingham MR in Roache v Newsgroup Newspapers Ltd [1998] EMLR 161 :-
"The judge must look closely at the facts of the particular case before him and ask: who, as a matter of substance and reality, has won? Has the plaintiff won anything of value which he could not have won without fighting the action through to a finish? Has the defendant substantially denied the plaintiff the prize which the plaintiff fought the action to win?" "
"14. In my judgment the critical distinction between the Medway and Fox cases is that the former was, but the latter was not, about the question who ought to be regarded in the substance as the successful party. In deciding that question in the Medway case, the Court of Appeal followed the Roache case, as well as the closely analogous decision of the Court of Appeal in Oksuzoglu v Kay [1998] 2 All ER 631, in which Brooke LJ said, on analogous facts to the present:
"In this line of cases, where the plaintiff only recovers between 1% and 3% of his original claim (sometimes, but not always, after a late amendment) the Court is entitled to ask itself: 'who was essentially the winning party?' It will not be distracted from making a just order as to costs by the absence of a payment into court which the plaintiff obviously would not have accepted." "
"Quite separately from the analysis of the question who was the successful party, it is well settled that where a late amendment is made which proves to be the sine qua non for the claimant's eventual success, the defendant is generally entitled to its costs incurred up until the making of that amendment see: Beoco Limited v Alfa Laval Co. Ltd. [1995] QB 137, per Stuart-Smith LJ at 154 and 156. Beoco was, incidentally, another example of the conclusion that the recovery of a trivial sum on account of a much larger claim did not make the claimant the successful party: see page 156."
"25 ... As to that, Stuart-Smith LJ said (at 154B):
"As a general rule, where a plaintiff makes a late amendment as here, which substantially alters the case the defendant has to meet and without which the action will fail, the defendant is entitled to the costs of the action down to the date of the amendment. There may, of course, be special reasons why this general rule should not be applied. An example of this is to be found in Kaines (U.K) Ltd. v. Osterreichische Wdrrenhandelsgesellschaft (formerly C.G.L. Handelsgesellschaft m.b.H.) [1993] 2 Lloyds Rep. 1, 9, where the judge was satisfied that, even if the amendment had been made earlier, the action would have been vigorously resisted."
24. The questions therefore are (i) whether the appellant's amendment "substantially alters the case the defendant has to meet" and (ii) whether without the amendment "the action will fail". I am prepared to assume that the appellant's amendment fulfilled the first condition, although I would observe that this case presented nothing like the situation in Beoco, where the amendment was put on a totally different ground. In the present case, the breaches of duty were much expanded, but the original case was preserved. However, would the appellant's action have failed without the amendment? Such a question is easily answered in a situation like Beoco where the original and amended pleas are entirely separate, the amendment is made at trial and the relevant costs order is made at the conclusion of trial; or in any case where, even if the amendment is made at a late stage before trial, the relevant costs order is made at the conclusion of trial. It can also be easily answered where the amending party accepts that he cannot succeed without his amendment, or where the court is capable of providing a summary answer before trial as to the viability of the unamended case."
Discussion and conclusion
Other matters
Conclusion