Groupama Insurance Company Ltd. v Overseas Partners Re Ltd & Anor [2003] EWCA Civ 1846 (17 December 2003)

Groupama Insurance Company Ltd. v Overseas Partners Re Ltd & Anor [2003] EWCA Civ 1846 (17 December 2003)

The Court of Appeal held that while Aon's alteration of the fax was improper, the trial judge placed disproportionate weight on this conduct and insufficient weight on the fact that Aon was joined to the action due to OP Re's defence. The judge's order that Aon bear all its own costs was too severe. The proper exercise of discretion under CPR 44.3 required that Aon be awarded 90% of its costs, with a 10% reduction for its conduct.

Citation
[2003] EWCA Civ 1846
Parties
Claimant: Groupama Insurance Company Limited; First Defendant/respondent: Overseas Partners Re Limited; Second Defendant/appellant: Aon Limited
Jurisdiction
England and Wales
Judgment Date
17 December 2003
Procedural Posture
Appeal (civil) / Appeal From Queen's Bench Division, Commercial Court, on Costs Order
Outcome
Appeal allowed in part
Legal Topics
Costs Orders, Discretion in Awarding Costs, Breach of Authority, Market Practice in Insurance, Misrepresentation and Non Disclosure
Civil Procedure Insurance Law Costs Orders Discretion in Awarding Costs Breach of Authority Market Practice in Insurance Misrepresentation and Non Disclosure

Case Brief

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Parties

Groupama Insurance Company Limited

Claimant

Overseas Partners Re Limited

First Defendant/respondent

Aon Limited

Second Defendant/appellant

Procedural Posture

Appeal (civil) / Appeal From Queen's Bench Division, Commercial Court, on Costs Order

Legal Issues

  1. 1 Whether the trial judge erred in ordering Aon to bear its own costs despite being successful at trial
  2. 2 Whether conduct prior to litigation can justify depriving a successful party of costs under CPR 44.3
  3. 3 Proper exercise of discretion in costs orders under CPR 44.3

Ratio Decidendi

The Court of Appeal held that while Aon's alteration of the fax was improper, the trial judge placed disproportionate weight on this conduct and insufficient weight on the fact that Aon was joined to the action due to OP Re's defence. The judge's order that Aon bear all its own costs was too severe. The proper exercise of discretion under CPR 44.3 required that Aon be awarded 90% of its costs, with a 10% reduction for its conduct.

Court Disposition

Appeal allowed in part

Orders

  • Order of Morison J set aside to the extent that Aon is to be paid 90% of its costs by OP Re; Aon to bear 10% of its own costs.