Neutral citation [2009] CAT 19
IN THE COMPETITION
Case No:
1107/4/10/08
APPEAL TRIBUNAL
Victoria House
22 June
2009
Bloomsbury Place London WC1A
2EB
Before:
THE HONOURABLE MR JUSTICE
BARLING
(President)
MICHAEL BLAIR QC
PROFESSOR PETER
GRINYER
Sitting as a Tribunal in
Scotland
BETWEEN:
MERGER ACTION
GROUP
Applicants
-v-
SECRETARY OF STATE FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM
Respondent
- supported by -
HBOS PLC LLOYDS TSB GROUP
PLC
Interveners
Mr. Ian Forrester Q.C. (of
White & Case LLP) and Mr. Andrew Bowen (instructed by Mr.
Walter Semple) appeared for the Applicants.
Mr. K.P.E. Lasok Q.C.,
Mr. Paul Harris, Miss Elisa Holmes and Mr. Gerry Facenna
(instructed by the Treasury Solicitor) appeared for the
Respondent.
Mr. Nicholas Green Q.C.
and Mr. Aidan Robertson (instructed by Allen & Overy LLP)
appeared for the Intervener HBOS plc.
Miss Helen Davies Q.C. and
Mr. Andrew Henshaw (instructed by Linklaters LLP) appeared for the
Intervener, Lloyds TSB Group plc.
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JUDGMENT (Expenses) |
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I. INTRODUCTION
1.
By its judgment in this matter given on 10 December 2008 (“the Main
Judgment”) the Tribunal dismissed an application for review under section
120 of the Enterprise Act 2002 lodged on 28 November by the Merger Action
Group, an unincorporated association, challenging a decision of the
Secretary of State for Business, Enterprise and Regulatory Reform under
section 45 of the Act not to refer to the Competition Commission an
anticipated acquisition by Lloyds TSB Group plc of HBOS plc (see [2008] CAT 36, 2009 SLT 10). The background to this matter is summarised in
paragraphs [10] to [31] of the Main Judgment. The abbreviations and
terminology used there by the Tribunal are adopted hereafter in the
present judgment, which is unanimous.
2.
By letter of 12 December 2008 the Registrar of the Tribunal wrote to
the parties setting a timetable for any written submissions they wished to
make on the question of expenses. (“Expenses” rather than “costs” is the
relevant term when, as in this case, the proceedings are to be treated as
proceedings in Scotland.)
3.
By letters of 17 and 18 December 2008 Lloyds TSB and HBOS (who
intervened in the proceedings in support of the Secretary of State)
respectively confirmed that they would not be making any applications for
expenses.
4.
On 18 December 2008 the Secretary of State lodged an application for
the Applicants to pay his expenses in the sum of £62,295.30. Written
submissions from the Applicants resisting the Secretary of State’s
application were received on 13 January 2009.
5.
We are asked by both parties to determine this application for
expenses on the information and submissions before us and without an oral
hearing. In the circumstances of this case the Tribunal does not consider
that an oral hearing is necessary or desirable. |
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II. |
THE
PARTIES’ SUBMISSIONS |
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6.
The Secretary of State submits that, as the winning party, he should
be awarded his expenses in accordance with the Tribunal’s indication in
Unichem v OFT (costs) [2005] CAT 31, [2006] CompAR 172, at
[17].
7.
The Secretary of States submits that there are four principal
considerations which the Tribunal should have in mind when deciding
whether to exercise its discretion to make an expenses award:
(a)
The Secretary of State’s conduct was reasonable throughout, and
substantial public resources were devoted to submitting evidence and
submissions within an unusually tight timescale.
(b) The
Applicants lodged its challenge on the very last day permitted, and made
no effort to inform the Secretary of State of the proposed application in
advance of lodging their notice of application with the Tribunal on 28
November 2008, as envisaged by paragraph 6.57 of the Tribunal’s Guide
to Proceedings1.
Pre-action notice might have enabled the parties to avoid certain
expenses, or even the litigation altogether.
(c)
Once the Secretary of State’s evidence had been served on 4 December, the
Treasury Solicitor wrote on his behalf on 5 December 2008 asking the
Applicants to withdraw the application in return for the Secretary of
State not applying for his expenses against them. The Applicants’ failure
to reconsider their position once in receipt of the evidence is an
important factor that supports an award of expenses.
(d) So
far as the Secretary of State is aware the Applicants are well-resourced
litigants who were fully aware of the risks of litigation, and who were in
a position to instruct a well-known law firm to represent them. There
is |
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1 The Guide to Proceedings is available from
the Tribunal’s website: www.catribunal.org.uk.
The requirements of the Guide to Proceedings constitute a Practice
Direction issued by the President pursuant to Rule 68(2) of the Tribunal
Rules. |
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therefore no principled basis
upon which the Secretary of State could be refused his
expenses.
8.
The Secretary of State also submits that his expenses are relatively
modest compared to the sums that are normally incurred in similar
proceedings before the Tribunal.
9.
The Applicants resist the Secretary of State’s application and
contend that he should bear his own expenses. The Applicants submit first
that they have conducted themselves responsibly, both in the steps taken
to lodge the Notice of Application and in making their case before the
Tribunal. The Applicants are persons of moderate means who desired to
bring before the Tribunal a matter of public interest. Their concerns were
neither fanciful nor frivolous. Their concerns were shared by members of
the Scottish Government, as well as former senior officers of the banking
community in Scotland.
10. The
Applicants explain in their written submissions on expenses why their
application was lodged at the end of the last day of the four week period
allowed for a challenge. The delay is said to have been caused by
difficulty in finding legal representatives who were not conflicted. The
Applicants did not wait until then in order to inconvenience the banks or
to put an obstacle in the way of the planned general meeting of HBOS
shareholders.
11. In
line with paragraph [36] of IBA Health Ltd v Office of Fair Trading
(costs) [2004] CAT 6, [2004] CompAR 529 the Applicants submit that the
objectives of the Act should not be frustrated by an order for expenses
that might discourage would-be applicants from making applications in the
future. The Applicants further submit that it was not reasonable to expect
them, in response to the Secretary of State’s letter of 5 December 2008,
to digest the voluminous evidence and documents supplied to them after the
deadline on the evening of 4 December and then to withdraw their
application by 5pm the next day.
12.
Finally, without prejudice to their primary submission, should the
Tribunal be minded to make an award as to expenses in favour of the
Secretary of State, the
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Applicants submit that any such
award should be limited to 10 per cent of his expenses, such expenses to
be dealt with by the Auditor of the Court of
Session. |
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III. TRIBUNAL’S JURISDICTION
TO AWARD EXPENSES AND COSTS
13. The
Tribunal’s jurisdiction to award expenses, or costs, is governed by rule
55 of The Competition Appeal Tribunal Rules 2003 (S.I. 2003, No. 1372)
(“the Tribunal Rules”) which provides, so far as is relevant:
“55. – (1) For the purposes of
these rules “costs” means costs and expenses recoverable in proceedings
before the Supreme Court of England and Wales, the Court of Session or the
Supreme Court of Northern Ireland.
(2) The Tribunal may at its
discretion, at any stage of the proceedings, make any order it thinks fit
in relation to the payment of costs by one party to another in respect of
the whole or part of the proceedings and, in determining how much the
party is required to pay, the Tribunal may take account of the conduct of
all parties in relation to the proceedings.
(3) Any party against whom
an order for costs is made shall, if the Tribunal so directs, pay to any
other party a lump sum by way of costs, or all or such proportion of the
costs as may be just. The Tribunal may assess the sum to be paid pursuant
to any order under paragraph (1), (2) or (3) or may direct that it be
assessed by the President, a chairman or the Registrar, or dealt with by
the detailed assessment of a costs officer of the Supreme Court or a
taxing officer of the Supreme Court of Northern Ireland or by the Auditor
of the Court of Session.”
14. Rule 3 provides:
“Unless the context otherwise
requires-(a) Parts I and V of these rules apply to all proceedings before
the Tribunal…”
15. Part V of the Tribunal Rules
includes rule 55. |
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16. Rule 55 therefore covers all
proceedings which come before the Tribunal. These are of various kinds,
but in general terms fall into one of the following
categories: |
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(1) Appeals on the merits against
decisions of the OFT or one of the other concurrent regulators brought
under sections 46 or 47 of the Competition Act 1998 (as amended) (“the
1998 Act”). Such appeals are typically against findings of infringement or
non-infringement of the Chapter I or |
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Chapter II prohibitions or the EC
competition rules and/or against the imposition or amount of a penalty for
infringement.
(2)
Appeals brought under the same sections in respect of certain other
types of decision of the OFT or other regulators, where the Tribunal must
determine the appeal on judicial review grounds rather than “on the
merits”. This is the case, for example, in third party appeals to the
Tribunal against decisions by the OFT to accept or release commitments
under section 31A of the 1998 Act.
(3)
So-called “follow on” claims for damages or other monetary award
under sections 47A or 47B of the 1998 Act in respect of losses caused by
an established infringement of the Chapter I or Chapter II prohibitions
(or EC equivalents).
(4)
Applications under sections 120 or 179 of the 2002 Act, which are in
the nature of judicial review of decisions of the relevant competition
authorities and ministers taken under Part 3 (mergers) or Part 4 (market
investigations) of that Act.
(5)
Appeals under section 192 of the Communications Act 2003 (“the 2003
Act”) against specified decisions of the Office of Communications
(“OFCOM”) and other decision-makers. The types of decisions covered by
section 192 are many and varied. Such appeals are “on the
merits”.
17. Given the fundamental
differences between these jurisdictions, as well as the differences
between individual cases even within a single jurisdiction, the discretion
afforded to the Tribunal under rule 55(2) and (3) is necessarily wide.
Apart from a reference in rule 55(2) to its discretion to “take account of
the conduct of all parties in relation to the proceedings”, the rule
leaves it to the Tribunal to develop the relevant principles to be
applied. As the Tribunal has emphasised on numerous occasions, the width
of the discretion enables the Tribunal to deal with cases justly and to
retain flexibility in its approach, avoiding the risk of guiding
principles evolving into rigid rules (see for example Emerson Electric
Co & Ors v Morgan |
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Crucible Co plc & Ors
(costs) [2008] CAT 28, [2009] CompAR 7, at [35] and [44]). As the
Tribunal said in that case at paragraph [44], there is no inconsistency
between the wide discretion, and an approach to its exercise which adopts
a specific starting point. Without this there may be an increased risk of
discordant decisions.
18.
Thus, for example, in relation to appeals against decisions by OFCOM
resolving disputes under section 185 of the 2003 Act2,
the Tribunal has recently stated that the starting point is that OFCOM
should not ordinarily be the subject of an adverse costs order where it
has acted reasonably and in good faith (see The Number (UK) Ltd &
Anor v OFCOM (costs) [2009] CAT 5, at [5]). However, the Tribunal also
emphasised in that case that an adverse costs order could be made
notwithstanding the absence of unreasonableness or bad faith where the
Tribunal considered it to be appropriate in the light of the specific
circumstances. This was in fact the position in T-Mobile (UK) Limited
& Ors v OFCOM (costs) [2009] CAT 8. (For another example see
Emerson (costs) (above) in relation to unsuccessful applications
under section 47A(5)(b) of the 1998 Act and rule 31(3) of the Tribunal
Rules for permission to bring a follow-on claim for damages before the end
of the period referred to in section 47A(8)(b) and rule
31(2)(a).)
19.
It is axiomatic that all such starting points are just
that – the point at which the court begins the process of taking account
of the specific factors arising in the individual case before it – and
there can be no presumption that a starting point will also be the
finishing point. All relevant circumstances of each case will need to be
considered if the case is to be dealt with justly. The Tribunal’s decision
in relation to costs/expenses can be affected by any one or more of an
almost infinite variety of factors, whose weight may well vary depending
upon the particular facts. Beyond recognising that success or failure
overall or on particular issues, the parties’ conduct in relation to the
proceedings, the nature, purpose and subject-matter of the proceedings,
and any offers of settlement are always likely to be candidates for
consideration, the factors are too many and too varied to render it
sensible to attempt to identify them exhaustively. |
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2 That section applies
to disputes relating to the provision of network access and to other
disputes relating to rights and obligations conferred or imposed by or
under Part 2 of the 2003 Act.
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20.
Cases such as the present (our category (4) in paragraph 16 above)
are in the nature of applications for judicial review (see subsections
120(4) and 179(4) of the Act). However, the Tribunal has stated that
whilst subsection 120(4) requires the substance of any application for
review to be determined in accordance with the principles which would be
applied by a court in an ordinary judicial review, the subsection does not
apply to an issue of costs (see IBA Health (costs) at [37]). It
follows that in relation to applications for review under sections 120, as
in all other categories of proceedings before it, the Tribunal exercises
its discretion under rule 55 in accordance with the principles which it
has developed. (It is difficult to see how the same would not also apply
in relation to subsection 179(4).)
21. The
Tribunal has identified as the appropriate starting point in section 120
applications that a successful party would normally obtain a costs award
in its favour (see for example Unichem (costs), at [17];
Stericycle International LLC v Competition Commission (costs)
[2006] CAT 22, [2007] CompAR 322, page 2, lines 8-9; and
Co-operative Group (CWS) Limited v Office of Fair Trading (costs)
[2007] CAT 25, [2007] CompAR 954, at [4]). However in those cases and
in others of the same kind the Tribunal has reiterated the need to retain
flexibility in order to reach a just result on the specific facts of the
case.
22. The
Tribunal will also naturally take note where appropriate of the approach
adopted in analogous proceedings by courts and tribunals in the various
jurisdictions of the United Kingdom.
Scotland
23. In
McArthur v Lord Advocate 2006 S.L.T. 170 (OH), a judicial review
case in which the petitioners sought a protective order for expenses, Lord
Glennie said at [9]:
“… Expenses are within the
discretion of the court and the width of this discretion has been
emphasised on many occasions: see for example Howitt v W Alexander
& Sons Ltd and Ramm v Lothian and Borders Fire Board. In
Howitt, Lord President Cooper gravely doubted "whether all the
conditions upon which that discretion should be exercised have ever been,
or ever will be, successfully imprisoned within the framework of rigid and
unalterable rules", and added that he did not think that it would be
desirable that they should be …”
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24. In
the present case the Secretary of State has submitted that in judicial
review cases in Scotland, expenses, while in the discretion of the court
as indicated in the above quotation, will ordinarily albeit not invariably
follow success. The decision of Lord M’laren in Liddell v Parish
Council of Ballingry 1908 16 SLT 258 referred to by the Applicants
does not appear to support a contrary proposition. It seems to have turned
on the fact that in the compulsory purchase proceedings in question the
sheriff was acting in an administrative and not a judicial capacity, and
as such was not entitled to award expenses (except possibly where an
objector had acted vexatiously). Indeed the discussion of the court
proceeded on the premise that in ordinary adversarial proceedings where
the party in question was a “contentious litigant” expenses would be
awarded.
England & Wales
25. As
far as judicial review in England and Wales is concerned, issues of costs
are governed by section 51 of the Supreme Court Act 1981 (as amended by
the Access to Justice Act 1999), and Part 44 of the Civil Procedure Rules
(“CPR”). Section 51 provides:
“s 51 Costs in civil division of Court of Appeal, High
Court and county courts.
(1) Subject to the
provisions of this or any other enactment and to rules of court, the costs
of and incidental to all proceedings in--
(a) the civil division of
the Court of Appeal;
(b) the High Court;
and
(c) any county court, shall
be in the discretion of the court.
(2) Without prejudice to any
general power to make rules of court, such rules may make provision for
regulating matters relating to the costs of those proceedings including,
in particular, prescribing scales of costs to be paid to legal or other
representatives or for securing that the amount awarded to a party in
respect of the costs to be paid by him to such representatives is not
limited to what would have been payable by him to them if he had not been
awarded costs.
(3) The court shall have
full power to determine by whom and to what extent the costs are to be
paid.
…”
26. CPR rule 44.3
states: |
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“Court’s discretion and
circumstances to be taken into account when exercising its discretion as
to costs
44.3(1) The court has discretion
as to –
(a) whether the 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. |
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(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.”
27. Thus although there is a wide
discretion, in England & Wales costs in judicial review generally
follow the event so that the loser will be ordered to pay the costs of the
successful party where the matter goes to a full hearing: see for example
Davey v Aylesbury Vale District Council [2007] EWCA Civ 116, [2008] 1 WLR 878, per Sir Anthony Clarke M.R. at paragraph [29]:
“I entirely agree with the
guidelines set out by Sedley LJ at paragraph 21 above. I would however add
one note of caution. It does seem to me that costs should ordinarily
follow the event and that it is for the claimant who has lost to show that
some different approach should be adopted on the facts of a particular
case. That principle is supported by the decision and reasoning of Dyson J
in R v Lord Chancellor ex p Child Poverty Action Group [1999] 1 WLR 347 at 355H-356E. That passage concludes as follows: "…. In considering
whether, and in what circumstances, there should be a departure from the
basic rule that costs follow the event in public interest challenge cases,
in my view it is important to have in mind the rationale for that basic
rule, and that it is for the applicants to show why, exceptionally, there
should be a departure from it." The basic rule he refers to is, as he
explained at page 356C, that costs follow the event in public law cases,
as in others, because, where an unsuccessful claim is brought against a
public body, it |
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imposes costs on that body which
have to be met out of money diverted from the funds available to fulfil
its primary public functions.”
28. For
further elaboration of the rationale for that rule see R v Lord
Chancellor, ex p Child Poverty Action Group [1999] 1 WLR 347, [1998] 2 All ER 755 per Dyson J (as he then was) at paragraphs 36-37. For a
discussion of the circumstances in which the court might, in the exercise
its overall discretion, depart from that basic rule, including cases which
Dyson J called “public interest” challenges, see ex p Child Poverty
Action Group (above) at paragraph 27, R (on the application of
Smeaton) v Secretary of State for Health (costs) [2002] EWHC 886 (Admin) [2002] 2 FLR 146 per Munby J at paragraph 17, and Davey
(above) at paragraph 21, where Sedley LJ said:
“On the conclusion of full
judicial review proceedings in a defendant's favour, the nature and
purpose of the particular claim is relevant to the exercise of the judge's
discretion as to costs. In contrast to a judicial review claim brought
wholly or mainly for commercial or proprietary reasons, a claim brought
partly or wholly in the public interest, albeit unsuccessful, may properly
result in a restricted or no order for costs.”
Northern Ireland
29. In
Northern Ireland costs issues are dealt with under Order 62 of the Rules
of Supreme Court. Rule 2(4) states that the costs of proceedings are in
the discretion of the Court. Rule 3(3) provides as follows:
“If the court in the exercise of
its discretion sees fit to make any order as to the costs of any
proceedings, the Court shall order the costs to follow the event, except
when it appears to the Court that in the circumstances of the case some
other order should be made as to the whole or any part of the
costs.”
30. In
deciding how to exercise its discretion on costs, the court is required to
take into account any payment of money into court (Rule 9(b)); the court
may also take into account misconduct or neglect of the parties (Rule
10(1)). The notes to Order 62 include the following:
“The general rule that costs
follow the event has an important function to encourage parties in a
sensible approach to increasingly expensive litigation. This general rule
promotes discipline within the litigation system, compelling the parties
to assess carefully for themselves the strength of any claim, and ensures
that the assets of the successful party are not depleted by reason of
having to go to court. This is as desirable in public law cases as it is
in private law cases. Where an unsuccessful claim is brought against a
public body, it imposes costs on that body |
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which have to be met out of the
public funds diverted from the funds available to fulfil its primary
public functions: R v Lord Chancellor ex p CPAG [1999] 1 WLR 347 (Dyson J); Re Moore [Costs] [2007] NIQB 23 [2007] 4 BNIL 130
(Gillen J)…
…A wholly successful defendant in
an action or respondent in judicial review is entitled to his costs unless
there is evidence that he brought about the litigation, has done something
connected with the institution or conduct of the proceedings to cause
unnecessary litigation or expense, or has done some wrongful act in the
transaction of which the plaintiff/applicant complains.”
IV. THE TRIBUNAL’S DECISION
31. We
start from the position that the Secretary of State has been successful in
resisting all aspects of the Applicants’ challenge to the Decision, and
that this result would normally lead to an award of expenses in the
Secretary of State’s favour (see Unichem v OFT (costs), at [17] and
the cases cited in paragraph [21] above). There is nothing to be
criticised in relation to the manner in which the Secretary of State
conducted his defence.
32. The
Applicants did not cover themselves in glory in the lead up to the lodging
of their application. As we pointed out in the Main Judgment (paragraph
[5]), the proceedings were commenced at the very end of the last possible
day (28 November 2008), notwithstanding that the Applicants can hardly
have been in any doubt that the Tribunal would be asked to hear and decide
the application as a matter of great urgency in advance of the HBOS
shareholders’ general meeting fixed for 12 December 2008. The Applicants’
explanation, namely that several law firms were approached before one was
found which did not have a conflict of interest, does not justify their
taking about three weeks to carry out the process of finding a legal
representative.
33. In
addition the Applicants failed to comply with the Tribunal’s practice
direction at paragraph 6.57 of the Guide to Proceedings, in that they did
not forewarn interested parties (i.e. the Secretary of State, HBOS and
Lloyds TSB) that the application was going to be made.
34.
However, once proceedings had been started the Applicants and their
legal team cooperated fully in agreeing and complying with a drastically
truncated procedure designed to make it possible for a final judgment to
be given before 12 December, |
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with considerable effort on the
part of all concerned. We were considerably assisted by the responsible
way in which all the advocates, including Mr Forrester QC, conducted the
oral proceedings.
35. For
the avoidance of doubt we should say that we do not consider that it would
be fair to hold against the Applicants the fact that they did not accept
the Secretary of State’s offer contained in the Treasury Solicitor’s
letter dated 5 December 2008. There was in our view inadequate time for
the Applicants and their legal team to assess the evidence (which had been
received the previous evening) and take a decision to drop the case by the
deadline, namely 5pm on the same day i.e. 5 December. Our decision on
costs therefore does not rely in any way upon that offer: we have neither
given the Secretary of State credit for making it, nor penalised the
Applicants for not accepting it.
36. The
Applicants were themselves successful on two contested issues, namely
forum/jurisdiction and standing (see [2008] CAT 34 and Main Judgment, at
[32] et seq.). Forum/jurisdiction was potentially an issue of some
importance, particularly if the matter had gone on appeal, as it meant
that any such appeal would go to the Court of Session rather than the
Court of Appeal. Although this matter was dealt with fairly briefly in the
course of the case management conference which would have taken place in
any event, some modest incremental expenses are likely to have been
involved in researching, preparing and delivering submissions on this
issue.
37.
When it comes to the issue of standing, the Applicants’ success does
not bring much credit to them given the way in which information relevant
to that issue was imparted to the other parties and the Tribunal (see
paragraph [46] of the Main Judgment).
38. The
Applicants’ best argument against the Secretary of State’s application for
expenses is probably the fact that they had no personal or private
interest in the outcome of the proceedings other than as persons with
business and personal interests reliant upon the availability of banking
services in, in particular, Scotland. In this regard there was nothing to
distinguish the Applicants from a large number of other consumers of
banking services. (We discount for these purposes the
fact |
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that one of the Applicants was
said to be a shareholder in HBOS.) The Applicants submitted that their
association was a group of responsible individuals pursuing a real and
legitimate interest in challenging the lawfulness of the Decision. The
Applicants stated that they were concerned, in particular, about the
reduction in choice in the banking sector as a result of the proposed
merger. No one has questioned the genuineness of that concern. Nor is it
in doubt that it was shared not just by the OFT, but also by a good many
other people in Scotland and the rest of the UK, including some leading
politicians and business people who expressed support for the application.
There is similarly no doubt that if the Decision had not been challenged
by the Applicants, no one else would have made such a challenge. (See
paragraphs [33], [34], [44], and [45] of the Main Judgment.) In these
circumstances it seems to us that the subject-matter of the Decision, and
by extension the challenge to the Decision, was to that extent a matter of
legitimate public interest, albeit that the legal grounds proved incapable
of bearing the weight placed upon them.
39. In
the light of the above we consider that there should be an award of
expenses in the Secretary of State’s favour but that it should fairly
reflect the matters referred to in the previous paragraph and also the
fact of the Applicants’ success in relation to the forum
issue.
40. The
Secretary of State has asked the Tribunal to make a summary assessment of
expenses in the sum of £62,295.30 which is broken down in a schedule
supplied to us. The Applicants have taken issue with this sum on the basis
of inter alia the size of the Secretary of State’s legal team
(paragraph 19 of their written submissions).
41. The
sum in question represents work carried out over about 12 days by Treasury
Solicitors and external counsel instructed by them. Although it is by no
means a negligible sum, it does not seem excessive or disproportionate
given the extreme urgency and expedition with which a great deal of work
had to be done, and the considerable importance of the outcome of the
case. We do not accept the Applicants’ criticisms of the size of their
opponent’s legal team, the hours worked by them, or the amount expended.
We note the Applicants’ submission that if any expenses are to be awarded
to the Secretary of State they should be limited to
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of his expenses, this amount to
be determined by detailed assessment by the Auditor of the Court of
Session. We do not accept that to award 10% of the Secretary of State’s
expenses would produce a just result. We also consider that in this case
it is preferable for the Tribunal summarily to assess the amount to be
paid rather than require a detailed assessment by a third party. We are of
the view that an appropriate amount to be paid by the Applicants in
respect of the Secretary of State’s expenses would be £35,000. We record
that although the Applicants are said to be persons of moderate means no
information whatsoever as to their means has been placed before the
Tribunal.
V. CONCLUSION
42. For the above reasons:
IT IS ORDERED THAT:
The Applicants pay to the
Secretary of State the sum of £35,000 in respect of the latter’s expenses,
such payment to be made within 28 days of the date of this
judgment. |
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The President
Michael Blair
Peter
Grinyer |
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Charles Dhanowa
Registrar
Date: 22 June
2009 |
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14 |
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