JP Morgan Chase Bank & Ors v Springwell Navigation Corp

JP Morgan Chase Bank & Ors v Springwell Navigation Corp

The combination of the scale and scope of Springwell’s claims, pursuit of wide-ranging and unsubstantiated allegations (including dishonesty), reliance on false and exaggerated evidence, shifting case theories, and refusal of a reasonable settlement offer, taken together, took the case out of the norm and justified an award of indemnity costs for 65% of Chase’s costs. However, Chase’s own conduct and certain aspects of the litigation warranted limiting the indemnity costs to 65% rather than the entirety.

Parties
Claimants/defendants by Counterclaim: JP Morgan Chase Bank (formerly known as The Chase Manhattan Bank) and others; Defendant/claimant by Counterclaim: Springwell Navigation Corporation
Jurisdiction
England and Wales
Judgment Date
21 November 2008
Procedural Posture
Commercial Litigation (costs Determination) / Post Trial Costs Ruling
Outcome
Springwell Navigation Corporation to pay 65% of JP Morgan Chase Bank’s costs of the action and counterclaim on the indemnity basis.
Legal Topics
Costs, Indemnity Costs, Litigation Conduct, Misrepresentation, Negligence
Civil Procedure Commercial Law Costs Indemnity Costs Litigation Conduct Misrepresentation Negligence

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Parties

JP Morgan Chase Bank (formerly known as The Chase Manhattan Bank) and others

Claimants/defendants by Counterclaim

Springwell Navigation Corporation

Defendant/claimant by Counterclaim

Procedural Posture

Commercial Litigation (costs Determination) / Post Trial Costs Ruling

Legal Issues

  1. 1 Whether indemnity costs should be awarded against Springwell Navigation Corporation for its conduct in the litigation
  2. 2 Whether the circumstances of the case take it 'out of the norm' justifying indemnity costs
  3. 3 What proportion of costs should be awarded on the indemnity basis

Ratio Decidendi

The combination of the scale and scope of Springwell’s claims, pursuit of wide-ranging and unsubstantiated allegations (including dishonesty), reliance on false and exaggerated evidence, shifting case theories, and refusal of a reasonable settlement offer, taken together, took the case out of the norm and justified an award of indemnity costs for 65% of Chase’s costs. However, Chase’s own conduct and certain aspects of the litigation warranted limiting the indemnity costs to 65% rather than the entirety.

Court Disposition

Springwell Navigation Corporation to pay 65% of JP Morgan Chase Bank’s costs of the action and counterclaim on the indemnity basis.

Orders

  • Springwell to pay 65% of Chase’s entire costs (excluding costs of discrete claims where Springwell succeeded) on the indemnity basis.