Haji-Ioannou & Ors v Frangos & Ors [2006] EWHC 279 (Ch) (24 February 2006)

Haji-Ioannou & Ors v Frangos & Ors [2006] EWHC 279 (Ch) (24 February 2006)

The court held that while CPR 44.14 gives discretion to disallow costs for delay in commencing detailed assessment proceedings, there is no requirement that such discretion is limited to exceptional cases. However, in the absence of prejudice to the paying party and given the substantial concession by the receiving party in disallowing interest, further sanction by disallowing costs would be disproportionate and unnecessary. The Costs Judge's exercise of discretion was flawed due to reliance on a mistaken finding of a tacit agreement, but exercising the discretion afresh, the court reached the same conclusion: no further sanction was warranted.

Citation
[2006] EWHC 279 (Ch)
Parties
Claimants: Loucas Haji-Ioannou and others; Defendants: Ioannis Frangos and others
Jurisdiction
England and Wales
Judgment Date
24 February 2006
Procedural Posture
Appeal From Supreme Court Costs Office (detailed Assessment of Costs) / Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Detailed Assessment of Costs, Sanctions for Delay, CPR 47.7, CPR 47.8, CPR 44.14, Disallowance of Interest, Disallowance of Costs
Civil Procedure Costs Detailed Assessment of Costs Sanctions for Delay CPR 47.7 CPR 47.8 CPR 44.14 Disallowance of Interest +1 more

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Parties

Loucas Haji-Ioannou and others

Claimants

Ioannis Frangos and others

Defendants

Procedural Posture

Appeal From Supreme Court Costs Office (detailed Assessment of Costs) / Appeal Judgment

Legal Issues

  1. 1 Whether delay in commencing detailed assessment proceedings justifies disallowance of costs under CPR 44.14 in addition to disallowance of interest under CPR 47.8
  2. 2 Whether the Costs Judge erred in law or discretion by not disallowing a proportion of the receiving parties' costs for delay

Ratio Decidendi

The court held that while CPR 44.14 gives discretion to disallow costs for delay in commencing detailed assessment proceedings, there is no requirement that such discretion is limited to exceptional cases. However, in the absence of prejudice to the paying party and given the substantial concession by the receiving party in disallowing interest, further sanction by disallowing costs would be disproportionate and unnecessary. The Costs Judge's exercise of discretion was flawed due to reliance on a mistaken finding of a tacit agreement, but exercising the discretion afresh, the court reached the same conclusion: no further sanction was warranted.

Court Disposition

Appeal dismissed

Orders

  • No further sanction imposed on the receiving parties beyond the disallowance of interest already conceded.
  • Final Costs Certificate ordering payment of £326,996.48 to the receiving parties within 14 days stands.