Hammersmatch Properties (Welwyn) Ltd v Saint-Gobain Ceramics and Plastics Ltd & Anor

Hammersmatch Properties (Welwyn) Ltd v Saint-Gobain Ceramics and Plastics Ltd & Anor

The court held that, although Saint-Gobain's Part 36 offer was very close to the sum awarded, it was not sufficient to trigger automatic costs consequences. There was no unreasonable refusal to negotiate by Hammersmatch, and Saint-Gobain's late articulation of its case made it difficult for Hammersmatch to assess the offer. The general rule should apply, but with a reduction to reflect Saint-Gobain's success on certain issues, particularly Hammersmatch's failed assertion of intention to carry out works. Accordingly, Saint-Gobain is to pay Hammersmatch 80% of its costs.

Parties
Claimant: Hammersmatch Properties (Welwyn) Limited; First Defendant: Saint-Gobain Ceramics and Plastics Limited; Second Defendant: Saint-Gobain Abrasives Inc
Jurisdiction
England and Wales
Judgment Date
24 July 2013
Procedural Posture
Civil Dilapidations Claim / Post Trial Costs Determination
Outcome
Saint-Gobain to pay Hammersmatch 80% of its costs, to be assessed on a standard basis if not agreed.
Legal Topics
Costs, Dilapidations, Part 36 Offers, Diminution in Value, Pre Action Conduct

Case Brief

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Parties

Hammersmatch Properties (Welwyn) Limited

Claimant

Saint-Gobain Ceramics and Plastics Limited

First Defendant

Saint-Gobain Abrasives Inc

Second Defendant

Procedural Posture

Civil Dilapidations Claim / Post Trial Costs Determination

  1. 1 Whether the claimant should be awarded full costs or whether costs should be reduced due to the proximity of the defendant's Part 36 offer to the judgment sum
  2. 2 Whether the conduct of the parties, including pre-action conduct and negotiation, should affect the costs order
  3. 3 Whether the claimant exaggerated its claim and whether this should affect costs

Ratio Decidendi

The court held that, although Saint-Gobain's Part 36 offer was very close to the sum awarded, it was not sufficient to trigger automatic costs consequences. There was no unreasonable refusal to negotiate by Hammersmatch, and Saint-Gobain's late articulation of its case made it difficult for Hammersmatch to assess the offer. The general rule should apply, but with a reduction to reflect Saint-Gobain's success on certain issues, particularly Hammersmatch's failed assertion of intention to carry out works. Accordingly, Saint-Gobain is to pay Hammersmatch 80% of its costs.

Court Disposition

Saint-Gobain to pay Hammersmatch 80% of its costs, to be assessed on a standard basis if not agreed.

Orders

  • Saint-Gobain to pay Hammersmatch 80% of its costs.
  • Costs to be assessed on a standard basis if not agreed.