COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT
(MR KENNETH PARKER QC, sitting as a Deputy High Court Judge)
Strand, London, WC2A 2LL |
||
B e f o r e :
LORD JUSTICE RICHARDS
and
LADY JUSTICE HALLETT DBE
____________________
THE QUEEN ON THE APPLICATION OF SCOTT (BY HIS MOTHER AND LITIGATION FRIEND BEVERLEY SCOTT) |
Appellant |
|
- and - |
||
LONDON BOROUGH OF HACKNEY |
Respondent |
____________________
WordWave International Limited
A Merrill Communications Company
190 Fleet Street, London EC4A 2AG
Tel No: 020 7404 1400 Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
Mr A Sinai (instructed by London Borough of Hackney Legal Department) appeared on behalf of the Respondent.
Mr R Clayton QC and Mr V Sachdeva (instructed by the Public Law Project) appeared on behalf of the Intervener.
____________________
Crown Copyright ©
Lady Justice Hallett:
"In my view, although the claimant had an apparently strong claim in relation to the central core of its case that the defendant failed to provide an adequate care assessment, the defendant, as it explains in its costs, submissions, had reasonable points of defence. Furthermore, certain aspects of the original claim were not pursued. I cannot confidently conclude that the claimant would have succeeded on its core claim if the matter had proceeded to a final hearing, and, taking account of the need not to discourage reasonable settlements, the fair course is to make no order for costs"
44.3--(1) The court has discretion as to –
(a) whether costs are payable by one party to another;
(b) the amount of those costs; and
(c) when they are to be paid.
(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.
(3) The general rule does not apply to the following proceedings –
(a) proceedings in the Court of Appeal on an application or appeal made in connection with proceedings in the Family Division; or
(b) proceedings in the Court of Appeal from a judgment, direction, decision or order given or made in probate proceedings or family proceedings.
(4) In deciding what order (if any) to make about costs, the court must have regard to all the circumstances, including –
(a) the conduct of all the parties;
(b) whether a party has succeeded on part of his case, even if he has not been wholly successful; and
(c) any payment into court or 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 –
(a) conduct before, as well as during, the proceedings and in particular the extent to which the parties followed any relevant pre-action protocol;
(b) whether it was reasonable for a party to raise, pursue or contest a particular allegation or issue;
(c) the manner in which a party has pursued or defended his case or a particular allegation or issue; and
(d) whether a claimant who has succeeded in his claim, in whole or in part, exaggerated his claim.
(6) The orders which the court may make under this rule include an order that a party must pay –
(a) a proportion of another party's costs;
(b) a stated amount in respect of another party's costs;
(c) costs from or until a certain date only;
(d) costs incurred before proceedings have begun;
(e) costs relating to particular steps taken in the proceedings;
(f) costs relating only to a distinct part of the proceedings; and
(g) interest on costs from or until a certain date, including a date before judgment."
"Quite apart from the statutory principle that legally aided litigants should not be treated differently from those who are not, the failure of a legally aided litigant to obtain a costs order against another party may have serious consequence in several respects:
(1) Where legal aid is subject to a contribution by the litigant he may be out of pocket;
(2) The level of remuneration for the lawyers is different between a legal aid and an inter partes determination of costs. This is said in part to reflect the risk lawyers take in backing a publicly funded case that turns out to be unsuccessful;
(3) It is important for the Legal Services Commission to recoup, where it can, the cost of litigation it has funded. It has, in the end a finite budget. It needs the funds to finance other deserving cases."
Both Mr Cragg and Mr Clayton were at pains to emphasise the contents of this passage and to commend it to us.
"Having considered the authorities, the principles I deduced to be applicable are as follows:
(i) the court has power to make a costs order when the substantive proceedings have been resolved without a trial but the parties have not agreed about costs.
(ii) it will ordinarily be irrelevant that the Claimant is legally aided;
(iii) the overriding objective is to do justice between the parties without incurring unnecessary court time and consequently additional cost;
(iv) at each end of the spectrum there will be cases where it is obvious which side would have won had the substantive issues been fought to a conclusion. In between, the position will, in differing degrees, be less clear. How far the court will be prepared to look into the previously unresolved substantive issues will depend on the circumstances of the particular case, not least the amount of costs at stake and the conduct of the parties;
(v) in the absence of a good reason to make any other order the fall back is to make no order as to costs;
(vi) the court should take care to ensure that it does not discourage parties from settling judicial review proceedings for example by a local authority making a concession at an early stage."
"It seems plain that in a case where costs are in issue, if the court is satisfied that but for the steps taken by an applicant's solicitor a public authority would not have fulfilled its statutory duty, then the costs of taking those steps should, in principle, be recoverable from the public authority … the court should approach such a factual issue on a broad basis, after a comparatively short consideration of the facts and doing the best it can on the available material."
Lord Justice Richards:
Sir Andrew Morritt:
Order: Appeal dismissed