National Westminster Bank Plc v Kotonou & Anor

National Westminster Bank Plc v Kotonou & Anor

The Bank must pay Mr and Mrs Kotonou's costs of the mortgage proceedings on the standard basis, not indemnity, as the Bank's conduct was proper. In the guarantee proceedings, a split costs order is justified: both parties to pay 50% of each other's costs due to Mr Kotonou's pursuit of unsubstantiated and extravagant allegations, which wasted significant costs, despite his ultimate success on a single issue.

Parties
Claimant/defendant: National Westminster Bank PLC; Defendant/claimant: Angeli Kotonou; Claimant: Deborah Kotonou
Jurisdiction
England and Wales
Judgment Date
19 June 2006
Procedural Posture
Civil (mortgage and Guarantee Proceedings) / Costs Judgment After Substantive Judgments
Outcome
Split costs order; standard basis costs; no indemnity costs; specific costs orders for interlocutory hearings.
Legal Topics
Costs, Mortgage Enforcement, Guarantee Enforcement, Misrepresentation, Litigation Funding
Civil Procedure Banking Law Contract Law Costs Mortgage Enforcement Guarantee Enforcement Misrepresentation Litigation Funding

Case Brief

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Parties

National Westminster Bank PLC

Claimant/defendant

Angeli Kotonou

Defendant/claimant

Deborah Kotonou

Claimant

Procedural Posture

Civil (mortgage and Guarantee Proceedings) / Costs Judgment After Substantive Judgments

Legal Issues

  1. 1 Whether costs should be awarded on the indemnity basis in mortgage proceedings
  2. 2 Allocation of costs for various interlocutory hearings
  3. 3 Appropriate costs order in guarantee proceedings given split success and conduct of parties

Ratio Decidendi

The Bank must pay Mr and Mrs Kotonou's costs of the mortgage proceedings on the standard basis, not indemnity, as the Bank's conduct was proper. In the guarantee proceedings, a split costs order is justified: both parties to pay 50% of each other's costs due to Mr Kotonou's pursuit of unsubstantiated and extravagant allegations, which wasted significant costs, despite his ultimate success on a single issue.

Court Disposition

Split costs order; standard basis costs; no indemnity costs; specific costs orders for interlocutory hearings.

Orders

  • Bank to pay Mr and Mrs Kotonou's costs of the mortgage proceedings on the standard basis.
  • Bank to have its costs of the hearing on 23rd February 2005.