JP Morgan Chase Bank & Ors v Springwell Navigation Corp [2008] EWHC 2848 (Comm) (21 November 2008)

JP Morgan Chase Bank & Ors v Springwell Navigation Corp [2008] EWHC 2848 (Comm) (21 November 2008)

Springwell's conduct in pursuing wide-ranging, weak, and shifting claims, making and abandoning serious allegations of impropriety and fraud, and relying on false and exaggerated evidence, taken together with the scale and manner of the litigation, took the case out of the norm and justified an award of indemnity costs. However, Chase also contributed to the scale and complexity, so only 65% of its costs (excluding discrete successful claims for Springwell) are awarded on the indemnity basis.

Citation
[2008] EWHC 2848 (Comm)
Parties
Claimant/defendant to Counterclaim: JP Morgan Chase Bank (formerly known as The Chase Manhattan Bank) and others; Defendant/claimant to Counterclaim: Springwell Navigation Corporation
Jurisdiction
England and Wales
Judgment Date
21 November 2008
Procedural Posture
Commercial Court Costs Application (post Trial) / Post Judgment, Costs Determination
Outcome
Springwell Navigation Corporation ordered to pay 65% of JP Morgan Chase Bank's costs of the action and counterclaim on the indemnity basis, excluding costs of discrete claims where Springwell succeeded.
Legal Topics
Costs, Indemnity Costs, Litigation Conduct, Misrepresentation, Negligence
Civil Procedure Commercial Law Costs Indemnity Costs Litigation Conduct Misrepresentation Negligence

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Parties

JP Morgan Chase Bank (formerly known as The Chase Manhattan Bank) and others

Claimant/defendant to Counterclaim

Springwell Navigation Corporation

Defendant/claimant to Counterclaim

Procedural Posture

Commercial Court Costs Application (post Trial) / Post Judgment, Costs Determination

Legal Issues

  1. 1 Whether indemnity costs should be awarded against Springwell Navigation Corporation for its conduct in the litigation
  2. 2 Whether the conduct of Springwell took the case 'out of the norm' justifying indemnity costs
  3. 3 What proportion of costs should be awarded on the indemnity basis

Ratio Decidendi

Springwell's conduct in pursuing wide-ranging, weak, and shifting claims, making and abandoning serious allegations of impropriety and fraud, and relying on false and exaggerated evidence, taken together with the scale and manner of the litigation, took the case out of the norm and justified an award of indemnity costs. However, Chase also contributed to the scale and complexity, so only 65% of its costs (excluding discrete successful claims for Springwell) are awarded on the indemnity basis.

Court Disposition

Springwell Navigation Corporation ordered to pay 65% of JP Morgan Chase Bank's costs of the action and counterclaim on the indemnity basis, excluding costs of discrete claims where Springwell succeeded.

Orders

  • Springwell to pay 65% of Chase's costs on the indemnity basis (excluding costs of discrete successful claims for Springwell).