BUSINESS AND PROPERTY COURTS
OF ENGLAND AND WALES
CHANCERY APPEALS (ChD)
Fetter Lane London, EC4A 1NL |
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B e f o r e :
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EASTEYE LIMITED | Claimant | |
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MALHOTRA PROPERTY INVESTMENTS LIMITED & ORS | Defendants |
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MR M. PRYOR and MR F. BANNING (instructed by Clarke Mairs LLP) appeared on behalf of the Defendants.
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Crown Copyright ©
MR JUSTICE NUGEE:
"£120,000 is allowed in respect of the Claimant's trial phase and instruction of leading Counsel is not approved."
"Use of both Leading and Junior Counsel in this phase is neither reasonable nor proportionate. The case concerns rights of way over two relatively short and somewhat insignificant alleyways in central Newcastle. The rights involved are not unimportant to the parties but also cannot be described as being of any great or transcending importance. The Claimant has to date instructed an experienced Junior Counsel (Mr Charles Morgan of 1978 call). Leading Counsel is an unnecessary, unreasonable and disproportionate luxury. The Claimant is of course entitled to avail itself of this luxury if it wishes but not at the Defendants' expense..."
"The litigation is no so complex as to necessitate the use of Leading and experienced Junior Counsel..."
"The observations set out in paragraph 11 above regarding the use of Leading and Junior Counsel are repeated..."
"Taking the above into account the Defendants have offered £90,040 for counsel, all of which is allocated to Junior Counsel as opposed to the £169,500 for Leading and Junior Counsel..."
"The Deputy District Judge gave no reasons for his decision. The reason cannot safely or reliably be discerned from the material before the Judge and neither the basis upon which the Judge approached the questions of reasonableness and proportionality nor the factors considered by the Judge nor his conclusions in respect of them can be understood or properly challenged. His decision cannot stand and must be taken afresh by the court hearing this appeal."
"Decisions on liability for costs are customarily given in summary form after oral argument at the conclusion of the delivery of the judgment. Often no reasons are given. Such a practice can, we believe, only comply with article 6 [of the European Convention on Human Rights] if the reason for the decision in respect of costs is clearly implicit from the circumstances in which the award is made. This was almost always the case before the introduction of the new Civil Procedure Rules, where the usual order was that costs 'followed the event'. The new rules encourage costs orders that more nicely reflect the extent to which each party has acted reasonably in the conduct of the litigation. Where the reason for an order as to costs is not obvious, the judge should explain why he or she has made the order. The explanation can usually be brief."
"Where no express explanation is given for a costs order, an appellate court will approach the material facts on the assumption that the judge will have had good reason for the award made. The appellate court will seldom be as well placed as the trial judge to exercise a discretion in relation to costs. Where it is apparent that there is a perfectly rational explanation for the order made, the court is likely to draw the inference that this is what motivated the judge in making the order. This has always been the practice of the court - see the comments of Sachs LJ in Knight v Clifton [1971] Ch 700 at 721. Thus, in practice, it is only in those cases where an order for costs is made with neither reasons nor any obvious explanation for the order that it is likely to be appropriate to give permission to appeal on the ground of lack of reasons against an order that relates only to costs."
"...the clerk was asking himself the wrong question. What he was asking himself was this: could a junior counsel or a senior solicitor reasonably have conducted the case on behalf of the applicants? The answer he came to was that a senior solicitor or junior counsel could have properly conducted the matter on behalf of the applicants. However [counsel for the receiving party] submits that what he should have asked himself was whether the applicants acted reasonably in employing leading counsel, which is an entirely different question. The answer to that question would be very different [the transcript reads 'difficult' but it must mean 'different'] on the facts of this case from the answer to the question with the justices' clerk obviously asked himself. You can have many situations - and [counsel for the receiving party] accepts that this is one such situation - where junior counsel or a senior solicitor could adequately deal with the case. But it was none the less reasonable for a defendant to employ leading counsel."
"In so far as the budgeted costs are not agreed, the court will review them and, after making any appropriate revisions, record its approval of those budgeted costs. The court's approval will relate only to the total figures for budgeted costs of each phase of the proceedings, although in the course of its review the court may have regard to the constituent elements of each total figure..."
"The making of a costs management order under rule 3.15 concerns the totals allowed for each phase of the budget. It is not the role of the court in the cost management hearing to fix or approve the hourly rates claimed in the budget. The underlying detail in the budget for each phase used by the party to calculate the totals claimed is provided for reference purposes only to assist the court in fixing a budget."
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