Alpha Chauffeurs Ltd. v Citygate Dealership Ltd. (t/a HR Owen) & Anor

Alpha Chauffeurs Ltd. v Citygate Dealership Ltd. (t/a HR Owen) & Anor

The judge erred in principle by failing to apply the general rule that the unsuccessful party should bear the costs, and by making Lombard North Central bear costs that should have been passed on to H R Owen as the ultimately unsuccessful party. The reasons given for departing from the general rule were unsound or irrelevant. The proper order is that Lombard North Central pay 80% of Alpha’s costs of the action (excluding costs attributable solely to Alpha’s claim against H R Owen and costs payable by Alpha to H R Owen), and that H R Owen pay Lombard North Central’s costs of the action and Part 20 proceedings, including the costs payable by Lombard North Central to Alpha under the new order.

Parties
Claimant: Alpha Chauffeurs Limited; First Defendant: Citygate Dealership Limited (trading as HR Owen); Second Defendant: Lombard North Central PLC
Jurisdiction
England and Wales
Judgment Date
20 February 2003
Procedural Posture
Civil Appeal / Appeal From High Court (queen’s Bench Division) on Costs Orders
Outcome
Appeal allowed
Legal Topics
Costs, Sale of Goods, Implied Terms, Indemnity, Rescission
Civil Procedure Contract Law Commercial Law Costs Sale of Goods Implied Terms Indemnity Rescission

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Parties

Alpha Chauffeurs Limited

Claimant

Citygate Dealership Limited (trading as HR Owen)

First Defendant

Lombard North Central PLC

Second Defendant

Procedural Posture

Civil Appeal / Appeal From High Court (queen’s Bench Division) on Costs Orders

Legal Issues

  1. 1 Whether the trial judge erred in the exercise of discretion regarding allocation of costs between the parties
  2. 2 Whether the general rule that the unsuccessful party pays costs should have been departed from in this case
  3. 3 Whether the costs of the action and Part 20 proceedings should be borne by H R Owen or Lombard North Central

Ratio Decidendi

The judge erred in principle by failing to apply the general rule that the unsuccessful party should bear the costs, and by making Lombard North Central bear costs that should have been passed on to H R Owen as the ultimately unsuccessful party. The reasons given for departing from the general rule were unsound or irrelevant. The proper order is that Lombard North Central pay 80% of Alpha’s costs of the action (excluding costs attributable solely to Alpha’s claim against H R Owen and costs payable by Alpha to H R Owen), and that H R Owen pay Lombard North Central’s costs of the action and Part 20 proceedings, including the costs payable by Lombard North Central to Alpha under the new order.

Court Disposition

Appeal allowed

Orders

  • Paragraphs 6 and 7 of the Deputy Judge’s order set aside and replaced as per paragraph 33 of the judgment.
  • Lombard North Central to pay 80% of Alpha’s costs of the action (excluding costs wholly attributable to Alpha’s claims against H R Owen and any costs payable by Alpha to H R Owen under paragraph 5), and Alpha’s costs of the counter-claim.