The Test Claimants in the FII Group Litigation v The Commissioners of Inland Revenue & Anor

The Test Claimants in the FII Group Litigation v The Commissioners of Inland Revenue & Anor

The court, exercising its discretion afresh as directed by the Supreme Court, determined that the claimants were substantially the successful party on the most important issues in the liability proceedings. A percentage-based approach, grouping issues by topic and assessing their significance, was appropriate. The outcome of the quantification trial was considered only to the extent it formed part of the background, with due caution given ongoing uncertainties. Accordingly, HMRC should pay 75% of the claimants’ costs of the first ECJ reference and 65% of their costs of the liability proceedings in the High Court and Court of Appeal.

Parties
Claimants: The Test Claimants in the FII Group Litigation; Defendants: The Commissioners of Inland Revenue; Defendants: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
14 October 2015
Procedural Posture
Civil / Costs Determination After Supreme Court Remittal
Outcome
Costs apportioned; claimants awarded majority of costs.
Legal Topics
Costs, Restitution, Limitation of Actions, Jurisdiction, Damages, Group Litigation, References to ECJ
Tax Law European Union Law Civil Procedure Costs Restitution Limitation of Actions Jurisdiction Damages +2 more

Case Brief

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Parties

The Test Claimants in the FII Group Litigation

Claimants

The Commissioners of Inland Revenue

Defendants

The Commissioners for Her Majesty’s Revenue & Customs

Defendants

Procedural Posture

Civil / Costs Determination After Supreme Court Remittal

Legal Issues

  1. 1 How should costs of the liability proceedings in the High Court and Court of Appeal be apportioned between the parties?
  2. 2 Should the outcome of the quantification trial affect the costs order for liability proceedings?
  3. 3 What is the appropriate methodology for assessing the relative importance of issues for costs purposes?

Ratio Decidendi

The court, exercising its discretion afresh as directed by the Supreme Court, determined that the claimants were substantially the successful party on the most important issues in the liability proceedings. A percentage-based approach, grouping issues by topic and assessing their significance, was appropriate. The outcome of the quantification trial was considered only to the extent it formed part of the background, with due caution given ongoing uncertainties. Accordingly, HMRC should pay 75% of the claimants’ costs of the first ECJ reference and 65% of their costs of the liability proceedings in the High Court and Court of Appeal.

Court Disposition

Costs apportioned; claimants awarded majority of costs.

Orders

  • HMRC to pay 75% of the claimants’ costs of the first reference to the ECJ.
  • HMRC to pay 65% of the claimants’ costs of the liability proceedings in the High Court and the Court of Appeal.