Description
Dispute as to costs incurred at first instance and on appeal, and the timing and rate of interest to be applied.
Held: The general rule is that the unsuccessful party will be ordered to pay the costs of the successful party, which is only departed from if the circumstances of the case require it. Relevant factors include the conduct of the parties and whether a party has succeeded in part of its claim. The court has a wide discretion as to whether it orders costs on the standard or indemnity basis, the latter of which requires there to have been some type of conduct or circumstances which takes the case 'out of the norm'. Typically, indemnity costs are reserved for cases where the court may particularly wish to indicate its disapproval of a party's conduct.
In the present case, the general rule as to costs applied. Highland and Scott Law were the overall successful parties and there was nothing in their conduct which required the court to depart from the general rule. Costs were to be paid on an indemnity basis due to misconduct attributable to RBS. A commercial interest rate of 2.5% over base applied for the whole period. In the event of a failure to pay, the Judgments Act rate of 8% applied. Costs on account ordered at 70% of estimated total costs.
(Principal judgment at
[2013] EWCA Civ 328)
