O'Rourke Construction Ltd v Healthcare Support (Newcastle) Ltd & Ors

O'Rourke Construction Ltd v Healthcare Support (Newcastle) Ltd & Ors

The Claimant was the substantial winner as against the Trust, but its pursuit of declarations 6 and 7 increased costs unnecessarily. The Trust is to pay 70% of the Claimant’s costs up to the hearing and 100% of the Claimant’s costs of preparing submissions on costs. HSN is to recover 90% of its costs, with the Claimant to pay 90% of HSN’s costs but to recover 75% of those costs from the Trust.

Parties
Claimant: Laing O’Rourke Construction Ltd (formerly Laing O’Rourke Northern Ltd); 1st Defendant: Healthcare Support (Newcastle) Ltd; 2nd Defendant: Newcastle upon Tyne Hospitals NHS Foundation Trust
Jurisdiction
England and Wales
Judgment Date
21 November 2014
Procedural Posture
Civil Costs Determination / Post Trial Costs Judgment
Outcome
Costs apportioned; interim payments ordered.
Legal Topics
Costs, Issue Based Costs Orders, Proportionality of Costs, Interim Payments
Civil Procedure Construction Law Costs Issue Based Costs Orders Proportionality of Costs Interim Payments

Case Brief

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Parties

Laing O’Rourke Construction Ltd (formerly Laing O’Rourke Northern Ltd)

Claimant

Healthcare Support (Newcastle) Ltd

1st Defendant

Newcastle upon Tyne Hospitals NHS Foundation Trust

2nd Defendant

Procedural Posture

Civil Costs Determination / Post Trial Costs Judgment

Legal Issues

  1. 1 Which party should bear the costs of the proceedings and in what proportion?
  2. 2 Whether an issue-based costs order or a proportionate costs order is appropriate
  3. 3 What interim payments should be made on account of costs?

Ratio Decidendi

The Claimant was the substantial winner as against the Trust, but its pursuit of declarations 6 and 7 increased costs unnecessarily. The Trust is to pay 70% of the Claimant’s costs up to the hearing and 100% of the Claimant’s costs of preparing submissions on costs. HSN is to recover 90% of its costs, with the Claimant to pay 90% of HSN’s costs but to recover 75% of those costs from the Trust.

Court Disposition

Costs apportioned; interim payments ordered.

Orders

  • Trust to pay Claimant £140,000 on account of costs.
  • Trust to pay HSN £97,500 on account of costs.