BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
BUSINESS LIST (Ch)
7 Rolls Buildings Fetter Lane London EC4A 1NL |
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B e f o r e :
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FRANCIS LAWRENCE LITTLE |
Claimant |
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- and - |
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BLOOMSBURY LAW SOLICITORS |
Defendant |
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Richard Ritchie (instructed by Bloomsbury Law Solicitors) for the Defendant
Hearing dates: 30 September 2019
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Crown Copyright ©
MASTER TEVERSON:
"A declaration thata Francis Lawrence Little is known as Frank Turner
b The Claimant is the registered owner of property known as 61 South Park Crescent, Catford, London, SE6 1JJ ("the Property")
c Upon the sale of the Property the Claimant was rightfully entitled to the proceeds of sale, the sum of £349,995
d The Defendant, being solicitors instructed by the Claimant to manage the sale of the Property have wrongfully, unjustifiably and unreasonably withheld such proceeds of same.
e An order that the Defendant do pay the proceeds of sale to the Claimant
f An order that the Defendant do pay interest on the proceeds of sale at 8%, the sum being due as a commercial debt from 15 June 2015 until 3 March 2019 being £104,020.56 and continuing at the daily rate of £76.71 until judgment or alternatively at such rate and for such period as the court thinks fit
g an order that the Defendant pay the costs of this application
h such further or other orders as may be just."
a. Was the Defendant entitled to deducti. £9,469.87 interest on the costs awarded to it under the order of 15 August 2016 dismissing the winding up petition with costs on an indemnity basis;ii. £95.72 interest on the costs of the detailed assessment of the costs under a final costs certificate dated 25 September 2018;iii. £15,382.50 further costs claimed by the Defendant as costs arising since the order of 15 August 2016 dismissing the winding up petition.b. Whether the Claimant is entitled to interest in addition to the interest that the proceeds of sale earned in the Defendant's hands, being the client account held for the Claimant
c. The costs of these proceedings.
1 £45,053.50 assessed costs under the order of 15 August 2016 and final costs certificate
2 Interest on £45,053.50 from 15 August 2016 to 1 April 2019 (959 days) at £9.87 per day amounting to £9,469,87.
3 The costs of the detailed assessment at £2,306.
4. Interest on £2,306 from 25 September 2018 to 15 March 2019 (188 days) at £0.51 per day amounting to £95.72.
5 Incidental costs arising from the Order of 15 August 2016 at £15,382.50.
The total amount deducted was £72,307.09.
"So those authorities show that the expression "of and incidental to" is a time-hallowed phrase in the context of costs and that it has received a limited meaning and, in particular that the words "incidental to" have been treated as denoting some subordinate costs to the costs of the action. If Miss Hegarty was right in this action it would mean that the costs of some very substantial proceedings would be treated as costs of and incidental to other proceedings."
a. If a reasonable doubt exists as to the title of the beneficiary, trustees will normally be allowed the costs of proceedings to compel distribution to the beneficiary, even if the court orders distribution, since the trustees are entitled to the protection of the court;b. But if trustees without reasonable cause fail to pay beneficiaries who are entitled they will be deprived of costs or ordered to pay costs, even though their reasons for withholding payment are honest but unreasonable;
c. In a case where reasonable doubt arises as to the beneficiary's title, the prudent course is for the trustees to apply to the court for directions rather than do nothing and defend, perhaps unsuccessfully, a claim brought by a beneficiary.
"f An order that the Defendant do pay interest on the proceeds of sale pursuant to the Senior Courts Act 1981 from 15 June 2015 until 1 April 2019 (when the sum of £258,351.27 was paid by the Defendant) and continuing on the outstanding sum of £91,643.73 or such further sums as the court finds due and owing until judgment or alternatively at such rate and for such period as the court thinks fit and/or [pursuant to] the court's inherent jurisdiction."
i The Defendant was entitled to deduct interest on the costs awarded to it at the rate of 8% under the order of 15 August 2016 until 1 December 2018 but that the offer contained in the letter of 30 November 2018 and all the circumstances was effective to stop interest running thereafter. This applies both to the interest on the costs awarded and on the costs of the detailed assessment. The former runs from 15 August 2016. The latter runs from 25 September 2018.ii The Defendant was not and ought not to be entitled to deduct the further sum of £15,382.50.
iii interest should be payable on the sum of £330,658.36 representing the balance of the proceeds from 12 June 2015 to 1 April 2019 at base rate with annual rests. Credit should be given for the interest paid on 1 June 2019.
Note 1 £349,995.00 is the figure shown on the Completion Accounts prepared by Bloomsbury Law (bundle 2 pages 409 and 410). £349,955.00 is recorded as being the purchase price in the contract (bundle 1 page 278 and the price stated to have been paid on the office copy entries (bundle 1 page 56). The parties have adopted the higher figure. [Back]