Sir Elton Hercules John & Ors v. Price Waterhouse & Ors [2001] EWHC Ch 391 (12th July, 2001)

Sir Elton Hercules John & Ors v. Price Waterhouse & Ors [2001] EWHC Ch 391 (12th July, 2001)

PW's application for indemnity costs fails as the court's jurisdiction under section 51 was exhausted by the prior perfected order for standard costs, and the contractual claim under the articles raises factual issues unsuitable for summary determination. Mr Haydon is awarded indemnity costs only for costs incurred after the date his settlement offer expired, as the claimants' refusal to accept a reasonable offer justifies indemnity costs from that point. Interest on costs prior to judgment is refused for both PW and Mr Haydon. Payments on account of costs are ordered in the amounts of £1 million for PW and £650,000 for Mr Haydon.

Citation
[2001] EWHC Ch 391
Parties
Claimants: Sir Elton and the EJ companies; First Defendant and Part 20 Claimants: PW (PricewaterhouseCoopers); Second Defendant: Mr Haydon; Part 20 Defendants: Part 20 Defendants
Jurisdiction
England and Wales
Procedural Posture
Civil / Post Judgment, Costs and Consequential Matters
Outcome
Applications for indemnity costs by PW refused; Mr Haydon awarded indemnity costs for period after 13 September 2000; interest on costs prior to judgment refused; payments on account of costs ordered.
Legal Topics
Costs, Indemnity Costs, Interest on Costs, Company Articles, Contractual Indemnity, Offers to Settle
Civil Procedure Company Law Costs Indemnity Costs Interest on Costs Company Articles Contractual Indemnity Offers to Settle

Case Brief

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Parties

Sir Elton and the EJ companies

Claimants

PW (PricewaterhouseCoopers)

First Defendant and Part 20 Claimants

Mr Haydon

Second Defendant

Part 20 Defendants

Part 20 Defendants

Procedural Posture

Civil / Post Judgment, Costs and Consequential Matters

Legal Issues

  1. 1 Whether indemnity costs should be awarded to PW and/or Mr Haydon
  2. 2 Whether interest on costs should be awarded for a period prior to judgment
  3. 3 Whether a payment on account of costs should be ordered and in what amount

Ratio Decidendi

PW's application for indemnity costs fails as the court's jurisdiction under section 51 was exhausted by the prior perfected order for standard costs, and the contractual claim under the articles raises factual issues unsuitable for summary determination. Mr Haydon is awarded indemnity costs only for costs incurred after the date his settlement offer expired, as the claimants' refusal to accept a reasonable offer justifies indemnity costs from that point. Interest on costs prior to judgment is refused for both PW and Mr Haydon. Payments on account of costs are ordered in the amounts of £1 million for PW and £650,000 for Mr Haydon.

Court Disposition

Applications for indemnity costs by PW refused; Mr Haydon awarded indemnity costs for period after 13 September 2000; interest on costs prior to judgment refused; payments on account of costs ordered.

Orders

  • PW's application for indemnity costs refused.
  • PW's application for interest on costs prior to judgment refused.