Denny v Babaee & Ors [2023] EWHC 1490 (TCC) (19 June 2023)

Denny v Babaee & Ors [2023] EWHC 1490 (TCC) (19 June 2023)

The Defendants' conduct in reneging on a clear settlement agreement after mediation was outside the norm and justifies indemnity costs from 1 January 2023. There was insufficient evidence or argument to justify a reduction in the Claimant's costs based on the change in valuation of the claim.

Citation
[2023] EWHC 1490 (TCC)
Parties
Claimant: Leighton Denny; First Defendant: Kambiz Babaee; Second Defendant: Connor Construction (Watford) Limited; Third Defendant: K10 Developments Limited
Jurisdiction
England and Wales
Judgment Date
19 June 2023
Procedural Posture
Civil Technology and Construction Court / Post Trial Costs Determination
Outcome
Claimant awarded costs on standard basis up to 31 December 2022 and on indemnity basis from 1 January 2023.
Legal Topics
Costs Assessment, Indemnity Costs, Standard Costs, Exaggeration of Claim, Settlement Agreements, Defective Premises Act 1972
Civil Procedure Construction Law Contract Law Costs Assessment Indemnity Costs Standard Costs Exaggeration of Claim Settlement Agreements +1 more

Case Brief

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Parties

Leighton Denny

Claimant

Kambiz Babaee

First Defendant

Connor Construction (Watford) Limited

Second Defendant

K10 Developments Limited

Third Defendant

Procedural Posture

Civil Technology and Construction Court / Post Trial Costs Determination

Legal Issues

  1. 1 Whether the Claimant is entitled to indemnity costs for part or all of the proceedings
  2. 2 Whether the Claimant's costs should be reduced due to a change in the valuation of the claim

Ratio Decidendi

The Defendants' conduct in reneging on a clear settlement agreement after mediation was outside the norm and justifies indemnity costs from 1 January 2023. There was insufficient evidence or argument to justify a reduction in the Claimant's costs based on the change in valuation of the claim.

Court Disposition

Claimant awarded costs on standard basis up to 31 December 2022 and on indemnity basis from 1 January 2023.

Orders

  • Defendants to pay Claimant's costs on the standard basis up to and including 31 December 2022.
  • Defendants to pay Claimant's costs on the indemnity basis from 1 January 2023.