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
Summary, issues, holding and outcome
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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
Legal Issues
- 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 Whether the conduct of the parties, including pre-action conduct and negotiation, should affect the costs order
- 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.
Full Case Text
Judgment text and source record
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