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Gavin & Anor v Community Housing Association Ltd [2013] EWCA Civ 580 - 24/05/13

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Appeal against, inter alia, an order to pay costs, including reserved costs of all interlocutory applications, on an indemnity basis.

Appeal dismissed. Held: The judge's power under CPR 44.4(3) to award costs on the indemnity basis is exceptional, justified where the circumstances take the case out of the norm.

Although it is not necessary to show misconduct on part of the paying party, in the present case an indemnity basis was justified due to a complete disregard of procedural rules and the making of unfounded and exaggerated claims. It was also within the trial judge's discretion to direct that costs of interlocutory applications follow the event where the costs of those applications were reserved so that the ultimate burden would be decided by having regard to the outcome in the action.

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