A v B & Ors

A v B & Ors

The claimant's initiation of English proceedings in breach of the arbitration and jurisdiction agreements constituted a serious departure from the norm, justifying indemnity costs to compensate the defendants fully. The claimant's conduct, including attempts to litigate issues already subject to arbitration and in other jurisdictions, misuse of the English court, and disregard for cost-efficient dispute resolution, warranted judicial disapproval and indemnity costs. No exceptional circumstances displaced this approach for any defendant except Company E, which was not a party to the arbitration agreement but was unnecessarily joined, also justifying indemnity costs.

Parties
Claimant: A; First Defendant: B; Second Defendant: C; Third Defendant: D; Fourth Defendant: Company E
Jurisdiction
England and Wales
Judgment Date
23 January 2007
Procedural Posture
Commercial Court Costs Application / Post Judgment Costs Determination
Outcome
Costs awarded in favour of all defendants on an indemnity basis, with interim payments and interest ordered.
Legal Topics
Costs, Indemnity Costs, Jurisdiction Clauses, Arbitration Agreements, Interim Payments, Interest on Costs
Civil Procedure Arbitration Commercial Law Costs Indemnity Costs Jurisdiction Clauses Arbitration Agreements Interim Payments +1 more

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Parties

A

Claimant

B

First Defendant

C

Second Defendant

D

Third Defendant

Company E

Fourth Defendant

Procedural Posture

Commercial Court Costs Application / Post Judgment Costs Determination

Legal Issues

  1. 1 Whether costs should be awarded on an indemnity or standard basis for proceedings brought in breach of an arbitration agreement
  2. 2 Whether interim payments on account of costs should be ordered
  3. 3 Whether interest on costs should be awarded and from what date

Ratio Decidendi

The claimant's initiation of English proceedings in breach of the arbitration and jurisdiction agreements constituted a serious departure from the norm, justifying indemnity costs to compensate the defendants fully. The claimant's conduct, including attempts to litigate issues already subject to arbitration and in other jurisdictions, misuse of the English court, and disregard for cost-efficient dispute resolution, warranted judicial disapproval and indemnity costs. No exceptional circumstances displaced this approach for any defendant except Company E, which was not a party to the arbitration agreement but was unnecessarily joined, also justifying indemnity costs.

Court Disposition

Costs awarded in favour of all defendants on an indemnity basis, with interim payments and interest ordered.

Orders

  • Claimant to pay First Defendant (B) costs on an indemnity basis, with an interim payment of £600,000 forthwith, interest at 8% from 9 May 2006.
  • Claimant to pay Second Defendant (C) costs on an indemnity basis, with an interim payment of £490,000 forthwith, interest at 8% from 9 May 2006.