Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors No. 3 (Costs) [2019] EWHC 257 (TCC) (15 February 2019)

Zagora Management Ltd & Ors v Zurich Insurance Plc & Ors No. 3 (Costs) [2019] EWHC 257 (TCC) (15 February 2019)

Costs orders must reflect the parties' relative success, the impact of settlement offers, and the reasonableness of conduct. ZBC claimants to pay ZBC's costs from 13 June 2018 (post-offer), with no order as to costs prior. Claimants as a group to recover 80% of their costs against ZIP, with a 20% reduction reflecting Zagora's failed claim and the claimants' limited success due to the ML cap, but ZIP's settlement offer was not reasonable due to onerous conditions and does not justify further reduction.

Citation
[2019] EWHC 257 (TCC)
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
Costs Judgment Following Principal and Supplemental Judgments in a Civil Claim / Post Trial, Costs Determination
Outcome
Costs orders made: ZBC claimants to pay ZBC's costs from 13 June 2018; no order as to costs prior. Claimants to recover 80% of their costs against ZIP. No further conduct-based adjustments.
Legal Topics
Costs Orders, Building Warranty Insurance, Deceit, Settlement Offers, Relative Success, Interest on Judgment, Conduct of Litigation
Civil Procedure Insurance Law Construction Law Costs Orders Building Warranty Insurance Deceit Settlement Offers Relative Success +2 more

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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

Costs Judgment Following Principal and Supplemental Judgments in a Civil Claim / Post Trial, Costs Determination

Legal Issues

  1. 1 Appropriate costs orders following mixed success in claims against multiple defendants
  2. 2 Effect of settlement offers on costs liability
  3. 3 Impact of relative success and conduct on costs awards

Ratio Decidendi

Costs orders must reflect the parties' relative success, the impact of settlement offers, and the reasonableness of conduct. ZBC claimants to pay ZBC's costs from 13 June 2018 (post-offer), with no order as to costs prior. Claimants as a group to recover 80% of their costs against ZIP, with a 20% reduction reflecting Zagora's failed claim and the claimants' limited success due to the ML cap, but ZIP's settlement offer was not reasonable due to onerous conditions and does not justify further reduction.

Court Disposition

Costs orders made: ZBC claimants to pay ZBC's costs from 13 June 2018; no order as to costs prior. Claimants to recover 80% of their costs against ZIP. No further conduct-based adjustments.

Orders

  • ZBC claimants to pay ZBC's costs from 13 June 2018 onwards.
  • No order as to costs between ZBC and ZBC claimants prior to 13 June 2018.