Reid Minty (A Firm) v Taylor [2001] EWCA Civ 1723 (29 October, 2001)

Reid Minty (A Firm) v Taylor [2001] EWCA Civ 1723 (29 October, 2001)

The judge erred in law by constraining his discretion to award indemnity costs only to cases involving moral condemnation or lack of probity. Under the CPR, the court's discretion is broader and must be exercised judicially in all the circumstances, considering unreasonable conduct as sufficient for indemnity costs. The matter should be remitted for reconsideration under the correct legal test.

Citation
[2001] EWCA Civ 1723
Parties
Claimant/respondent: Reid Minty (A Firm); Defendant/appellant: Gordon Taylor
Jurisdiction
England and Wales
Procedural Posture
Appeal (costs) / Appeal From High Court (costs Order) to Court of Appeal
Outcome
Appeal allowed; costs order set aside; matter remitted to judge for reconsideration.
Legal Topics
Costs, Indemnity Costs, Civil Procedure Rules, Libel, Offers to Settle
Civil Procedure Defamation Costs Indemnity Costs Civil Procedure Rules Libel Offers to Settle

Case Brief

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Parties

Reid Minty (A Firm)

Claimant/respondent

Gordon Taylor

Defendant/appellant

Procedural Posture

Appeal (costs) / Appeal From High Court (costs Order) to Court of Appeal

Legal Issues

  1. 1 Whether the judge erred in law by holding that indemnity costs require conduct deserving moral condemnation or lack of probity
  2. 2 Whether the defendant is entitled to indemnity costs following a successful defence in a libel action after making settlement offers

Ratio Decidendi

The judge erred in law by constraining his discretion to award indemnity costs only to cases involving moral condemnation or lack of probity. Under the CPR, the court's discretion is broader and must be exercised judicially in all the circumstances, considering unreasonable conduct as sufficient for indemnity costs. The matter should be remitted for reconsideration under the correct legal test.

Court Disposition

Appeal allowed; costs order set aside; matter remitted to judge for reconsideration.

Orders

  • Appeal allowed with costs assessed at £22,500 inclusive of VAT.
  • Case remitted to Gray J for further determination of costs.