Greenwich Millennium Village Ltd & Ors v Essex Services Group Plc & Ors

Greenwich Millennium Village Ltd & Ors v Essex Services Group Plc & Ors

Essex is liable to GMVL for indemnity costs and enhanced interest under Part 36 due to failure to accept a valid offer, and these costs are to be passed down to HSE under contractual indemnity. Robson is liable to HSE for costs on an indemnity basis except for Part 36 enhancements, which do not apply as Robson lacked knowledge of the offer. Apportionment between Core 2 and Core 3 is set at 70/30%. Interim payments are ordered at 60% of approved costs budgets. A stay is granted on the balance of Robson's interim payment due to risk of insolvency. Section 51 direct payment orders are refused due to complexity and risk.

Parties
Claimant: Greenwich Millennium Village Limited; 1st Defendant: Essex Services Group PLC; 2nd Defendant: Hoare Lea (a firm); 3rd Party: HS Environmental Services Limited; 4th Party: W T Partnership Limited; 6th Party: D G Robson Mechanical Services Limited
Jurisdiction
England and Wales
Judgment Date
11 April 2014
Procedural Posture
Civil / Costs Judgment Following Main Judgment
Outcome
Costs judgment issued with detailed orders for indemnity costs, interest, apportionment, interim payments, and stay.
Legal Topics
Costs, Indemnity, Interest, Multi Party Litigation, Contractual Indemnity, Part 36 Offers, Causation, Contribution, Interim Payments, Stay of Execution
Civil Procedure Contract Law Construction Law Costs Indemnity Interest Multi Party Litigation Contractual Indemnity +5 more

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Parties

Greenwich Millennium Village Limited

Claimant

Essex Services Group PLC

1st Defendant

Hoare Lea (a firm)

2nd Defendant

HS Environmental Services Limited

3rd Party

W T Partnership Limited

4th Party

D G Robson Mechanical Services Limited

6th Party

Procedural Posture

Civil / Costs Judgment Following Main Judgment

Legal Issues

  1. 1 Entitlement to indemnity costs under Part 36
  2. 2 Interest on damages and costs under Part 36
  3. 3 Apportionment of costs between Core 2 and Core 3

Ratio Decidendi

Essex is liable to GMVL for indemnity costs and enhanced interest under Part 36 due to failure to accept a valid offer, and these costs are to be passed down to HSE under contractual indemnity. Robson is liable to HSE for costs on an indemnity basis except for Part 36 enhancements, which do not apply as Robson lacked knowledge of the offer. Apportionment between Core 2 and Core 3 is set at 70/30%. Interim payments are ordered at 60% of approved costs budgets. A stay is granted on the balance of Robson's interim payment due to risk of insolvency. Section 51 direct payment orders are refused due to complexity and risk.

Court Disposition

Costs judgment issued with detailed orders for indemnity costs, interest, apportionment, interim payments, and stay.

Orders

  • Essex to pay GMVL indemnity costs from 3 May 2012 to Main Judgment; standard basis before that date.
  • Essex to pay GMVL interest on damages and costs at 4% above base rate from 3 May 2012 to Main Judgment.