Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors No. 3 (Costs)

Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors No. 3 (Costs)

Costs in relation to ZBC: No order as to costs up to 12 June 2018; ZBC claimants to pay all ZBC's costs from 13 June 2018 due to failure to accept a reasonable settlement offer and failure to address reliance issues. Costs in relation to ZIP: Claimants as a group (including Zagora) to recover 80% of their costs from ZIP, reflecting a 20% reduction for Zagora's failed claim and the claimants' lack of success on the maximum liability cap, with no further reduction for conduct or the settlement offer due to unreasonable terms in the offer.

Parties
Claimants: Zagora Management Limited & Others; First Defendant: Zurich Insurance PLC; Second Defendant: Zurich Building Control Services Limited; Third Defendant: East West Insurance Company Limited
Jurisdiction
England and Wales
Judgment Date
15 February 2019
Procedural Posture
Civil (costs Judgment) / Post Trial Costs Determination
Outcome
Costs orders made as specified: ZBC claimants to pay ZBC's costs from 13 June 2018; claimants to recover 80% of their costs from ZIP; no further orders for conduct.
Legal Topics
Costs Orders, Settlement Offers, Building Warranty Claims, Fraud/deceit, Interest on Judgments
Civil Procedure Insurance Law Costs Orders Settlement Offers Building Warranty Claims Fraud/deceit Interest on Judgments

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Parties

Zagora Management Limited & Others

Claimants

Zurich Insurance PLC

First Defendant

Zurich Building Control Services Limited

Second Defendant

East West Insurance Company Limited

Third Defendant

Procedural Posture

Civil (costs Judgment) / Post Trial Costs Determination

Legal Issues

  1. 1 Appropriate costs orders following principal and supplemental judgments
  2. 2 Effect of settlement offers on costs liability
  3. 3 Impact of findings of deceit on costs

Ratio Decidendi

Costs in relation to ZBC: No order as to costs up to 12 June 2018; ZBC claimants to pay all ZBC's costs from 13 June 2018 due to failure to accept a reasonable settlement offer and failure to address reliance issues. Costs in relation to ZIP: Claimants as a group (including Zagora) to recover 80% of their costs from ZIP, reflecting a 20% reduction for Zagora's failed claim and the claimants' lack of success on the maximum liability cap, with no further reduction for conduct or the settlement offer due to unreasonable terms in the offer.

Court Disposition

Costs orders made as specified: ZBC claimants to pay ZBC's costs from 13 June 2018; claimants to recover 80% of their costs from ZIP; no further orders for conduct.

Orders

  • No order as to costs between ZBC and ZBC claimants up to 12 June 2018.
  • ZBC claimants to pay all ZBC's costs from 13 June 2018.