FAMILY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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Applicant |
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Respondent |
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Mr Edward Devereux (instructed by Hughes Fowler Carruthers) for the Respondent
Hearing dates: 27 July 2016
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Crown Copyright ©
Mr Justice MacDonald:
INTRODUCTION
"At the date the District Judge made his order on 16 March 2016 the English court did not have jurisdiction to recognise the order made by the Russian court on 18 April 2013 because the 1996 Hague Convention was not in force between England and Wales and the Russian Federation on 18 April 2013."
BACKGROUND
"1. The order made under case number 2-572/13 on 18 April 2013 in the Dzerzhinsky District Court of St Petersburg shall be registered pursuant to the Hague Convention 1996.
2. The judgment of the 8th April 2013 in the Dzerzhinsky District Court of St Petersburg has been registered under the Hague Convention 1996 and under Number CRR 2016/10"
THE APPEAL
"The Convention shall apply to the recognition and enforcement of measures taken after its entry into force as between the State where the measures were taken and the requested State."
COSTS
The Law
i) The court may, pursuant to FPR 2010 r 28.1, make such order as to costs in family proceedings as it thinks just. Applications for recognition and enforcement under the 1996 Hague Convention fall within the ambit of FPR 2010 r 28.1.ii) In exercising its wide discretion as to costs the court must, pursuant to FPR 2010 r 1.2(a) further the overriding objective to deal with case justly having regard to the welfare issues involved;
iii) The general rule in CPR r 44.2(2) that the unsuccessful party will be ordered to pay the costs of the successful party does not apply in family proceedings;
iv) In deciding whether to make an order in respect of costs, pursuant to CPR 44.2(4) the court must have regard to all the circumstances, including the conduct of the parties, whether a party has succeeded on part of his case even if he has not been wholly successful and any admissible offer to settle made by a party which is not an offer to which costs consequences under CPR Part 36 apply. The court is also entitled to have regard to a disparity of means between the parties (E C-L v DM (Child Abduction: Costs) [2005] 2 FLR 772). Each case will turn on its own facts.
v) Pursuant to CPR 44.2 and so far as is relevant in this case, the conduct of the parties relevant to the issue of costs includes conduct before as well as during the proceedings, whether it was reasonable for a party to raise, pursue or contest a particular allegation or issue and the manner in which a party has pursued or defended his case or a particular allegation or issue.
vi) The general practice of not awarding costs against a party in family proceedings in the absence of reprehensible behaviour or an unreasonable stance is one that accords with the ends of justice (Re T (Costs: Care Proceedings: Serious Allegation Not Proved) [2013] 1 FLR 133 at [44]).
vii) Where the court is to assess the amount of costs (whether by summary or detailed assessment), pursuant to CPR r 44.3(1) the court will not allow costs which have been unreasonably incurred or are unreasonable in amount. Pursuant to CPR r 44.3(2), when assessing costs on the standard basis the court will only allow costs which are proportionate to the matters in issue and costs which are disproportionate in amount may be disallowed or reduced even if they were reasonably or necessarily incurred. CPR r 44.3(5) provides, in so far as is relevant to this case, that costs incurred will be proportionate if they bear a reasonable relationship to the complexity of the litigation, any additional work generated by the conduct of the paying party and any wider factors involved in the proceedings, such as reputation or public importance (see also FPR 2010 PD28A para 4.4).
viii) In deciding the amount of costs, CPR r 44.4 also requires the court to take into account whether the costs were proportionately and reasonably incurred. The court will also have regard to, inter alia, the parties conduct before, as well as during, the proceedings, the efforts made before and during the proceedings to try and resolve the dispute, the importance of the matter to all the parties, the particular complexity of the matter or the difficulty or novelty of the questions raised, the skill, effort, specialised knowledge and responsibility involved, the time spent on the case and the place where and the circumstances in which the work was done.
ix) On the question of proportionality, the touchstone of reasonable and proportionate costs is not the amount of costs which it was in the party's best interests to incur but the lowest amount which he or she could reasonably have been expected to spend in order to have his or her case conducted and presented proficiently having regard to all the relevant circumstances. Expenditure above and beyond that level is for a party's own account and not recoverable from the other party (Khazakstan Kagazy PLC v Zhunus [2015] EWHC 404 (Comm)).
x) When making an order for costs the judge should clearly state his or her reasons (English v Emery Reimbold & Strick Ltd [2002] EWCA Civ 605).
The Submissions
Discussion
i) I am not satisfied that the hourly rate for the Grade C fee earner of £270 per hour is reasonable. I am prepared to allow an hourly rate of £200 per hour. I am not satisfied that the hourly rate for the Grade A fee earner of £550 is proportionate and reasonable. I am prepared to allow an hourly rate of £325. Finally, I am not satisfied that the hourly rate for the Grade D fee earner of £150 is proportionate and reasonable. I am prepared to allow an hourly rate of £125.ii) I am not satisfied, given the simple and singular nature of the point in issue, that it was proportionate and reasonable to expend 3 hours in attendance on the client. I am prepared to allow 1 hour for the Grade A fee earner, amounting to £325 as against a claimed figure of £1,118.
iii) With respect to attendance on opponents I am likewise not satisfied, given the simple and singular nature of the point in issue, that it was proportionate to expend 13.3 hours on letters and emails out and telephone calls. It was plainly necessary for certain letters to be sent setting out the father's case before an appeal was issued, chasing the mother for a response and notifying the mother that the appeal had been issued and corresponding in respect of the impending appeal hearing. Whilst the first of these would have taken some time, the remainder would have taken very little. I am prepared to allow 1 hour for the Grade A fee earner and 0.5 hours for the Grade C fee earner, amounting to £425 as against a claimed sum of £3,997.
iv) The attendance on others is not further particularised in any way in the Schedule of Costs and I am not prepared to allow those costs, claimed in the sum of £2,341.
v) I am not prepared to allow the sum claimed for work done on documents. There is no schedule attached to the Statement of Costs enumerating in any way the work claimed in this regard. Further, and in any event, given the simple and singular nature of the point in issue, where the letters required to be written to the other side are dealt with elsewhere and where counsel drafted Notice of Appeal and documents for the hearing, there was in my judgment no requirement to spend significant periods of time working on documentation. I am prepared to allow 1 hour for the Grade A fee earner, amounting to £325 as against a claimed figure of £9,352.
vi) In terms of the attendance at the hearing, in circumstances where the father's case was entirely straightforward in nature, comprising one unassailable legal submission, and in circumstances where the father was not attending the hearings, I am satisfied that it was not appropriate for counsel to be attended by a Grade A fee earner. In the circumstances, I take the view that it was reasonable and proportionate for counsel to be attended by a Grade D fee earner. I am prepared to allow 4.4 hours attendance amounting to £550 as against the claimed sum of £2,680 (Mr Devereux having already made certain concessions in respect of the figure for attendance).
vii) In circumstances where the father's solicitors occupy premises in the immediate vicinity of the court, the figure for travel and waiting is disproportionate. I am prepared to allow 0.5 hours travel and waiting time for the Grade D fee earner, amounting to £62.50 as against a claimed figure of £4,850.
viii) With respect to the evident expertise, skill and industry of junior counsel instructed on behalf of the father, the cost of advice/conference/ documents of £4,550 is disproportionate in circumstances where, again, the father's case was entirely straightforward in nature, comprising one unassailable legal submission. Within this context I am prepared to allow £800.
ix) Counsel's fee of £8,500 for the two hearings is disproportionate in circumstances where the issue in dispute is, for the reasons set out above, so narrow. Again with respect to the evident expertise, skill and industry of junior counsel, I am prepared to allow a total of £1250 for attendance at the hearings.
CONCLUSION