Sirketi v Kupeli & Ors [2018] EWCA Civ 1264 (31 May 2018)

Sirketi v Kupeli & Ors [2018] EWCA Civ 1264 (31 May 2018)

In complex group litigation with mixed outcomes, 'success' for costs purposes under CPR 44.2 must be assessed by reference to the litigation as a whole, not merely by who receives money. Where neither party is wholly successful and both have substantial success, the correct approach may be to make no order as to costs, rather than awarding costs to the party who receives payment in a minority of claims.

Citation
[2018] EWCA Civ 1264
Parties
Appellant/second Defendant: Atlasjet Havacilik Anonim Sirketi; First Respondents/claimants: Ozlem Kupeli & Others; Second Respondent/first Defendant: Kibris Turk Hava Yollari Sirketi (trading as Cyprus Turkish Airlines)
Jurisdiction
England and Wales
Judgment Date
31 May 2018
Procedural Posture
Appeal / Court of Appeal Judgment on Costs Order Following Trial of Preliminary Issues and Lead Cases
Outcome
Appeal allowed; costs order set aside; no order as to costs between parties.
Legal Topics
Costs in Group Litigation, Breach of Contract, Denied Boarding Regulation, Assessment of 'success' Under CPR 44.2, Group Claims Without GLO
Civil Procedure Contract Law Aviation Law Costs in Group Litigation Breach of Contract Denied Boarding Regulation Assessment of 'success' Under CPR 44.2 Group Claims Without GLO

Case Brief

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Parties

Atlasjet Havacilik Anonim Sirketi

Appellant/second Defendant

Ozlem Kupeli & Others

First Respondents/claimants

Kibris Turk Hava Yollari Sirketi (trading as Cyprus Turkish Airlines)

Second Respondent/first Defendant

Procedural Posture

Appeal / Court of Appeal Judgment on Costs Order Following Trial of Preliminary Issues and Lead Cases

Legal Issues

  1. 1 Who is the 'successful party' for costs purposes in complex group litigation under CPR 44.2
  2. 2 Appropriate approach to costs orders in group claims with mixed outcomes
  3. 3 Whether receipt of money is determinative of 'success' in group litigation

Ratio Decidendi

In complex group litigation with mixed outcomes, 'success' for costs purposes under CPR 44.2 must be assessed by reference to the litigation as a whole, not merely by who receives money. Where neither party is wholly successful and both have substantial success, the correct approach may be to make no order as to costs, rather than awarding costs to the party who receives payment in a minority of claims.

Court Disposition

Appeal allowed; costs order set aside; no order as to costs between parties.

Orders

  • Original costs order requiring Atlasjet to pay 33% of claimants' costs is set aside.
  • No order as to costs as between Atlasjet and claimants.