Dau Chi Chong v Funafloat Ltd (t/a College Cruisers) & Anor

Dau Chi Chong v Funafloat Ltd (t/a College Cruisers) & Anor

The claimant caused the costs to be incurred by joining and pursuing the second defendant. The usual rule that costs follow the event should apply. The first defendant should only pay the costs it caused, i.e., the costs of the Part 20 claim. The trial judge erred in ordering the first defendant to pay the second defendant's costs subject to an indemnity from the claimant.

Parties
Claimant: Dau Chi Chong; First Defendant/appellant: Funafloat Ltd t/a College Cruisers; Second Defendant/respondent: British Waterways Board
Jurisdiction
England and Wales
Judgment Date
31 January 2013
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Costs
Outcome
Appeal allowed
Legal Topics
Costs, Joinder of Parties, Contribution Between Defendants, Apportionment of Liability
Civil Procedure Tort Law Costs Joinder of Parties Contribution Between Defendants Apportionment of Liability

Case Brief

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Parties

Dau Chi Chong

Claimant

Funafloat Ltd t/a College Cruisers

First Defendant/appellant

British Waterways Board

Second Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Costs

Legal Issues

  1. 1 Whether the trial judge erred in ordering the first defendant to pay the second defendant's costs subject to an indemnity from the claimant
  2. 2 Whether the usual rule that costs follow the event should apply
  3. 3 Who caused the costs to be incurred in the litigation

Ratio Decidendi

The claimant caused the costs to be incurred by joining and pursuing the second defendant. The usual rule that costs follow the event should apply. The first defendant should only pay the costs it caused, i.e., the costs of the Part 20 claim. The trial judge erred in ordering the first defendant to pay the second defendant's costs subject to an indemnity from the claimant.

Court Disposition

Appeal allowed

Orders

  • Order substituted: the claimant to pay the costs of both the first and second defendants for the main action.
  • The first defendant to pay the costs of the Part 20 claim.