Colour Quest Ltd & Ors v Total Downstream UK Plc & Ors (Rev 1) [2009] EWHC 823 (Comm) (22 April 2009)

Colour Quest Ltd & Ors v Total Downstream UK Plc & Ors (Rev 1) [2009] EWHC 823 (Comm) (22 April 2009)

Indemnity costs were justified against Total up to 23 May 2008 for unreasonable denial of negligence, but not for the foreseeability issue or for Chevron's claims of dishonesty. BP was entitled to indemnity costs from 28 June 2008 following clarification of its Part 36 offer. Shell was entitled to costs for the lost fuel claim, and WLPS/UKOP was entitled to full costs. Interest on costs was set at three months LIBOR +4% for BP, and Judgment Act interest on other costs was postponed to six months from judgment. Assessment of Chevron's costs was not postponed pending appeal.

Citation
[2009] EWHC 823 (Comm)
Parties
Claimants: Colour Quest Limited and Others; Claimants: Douglas Jessop Claimants; Claimants: West London Pipeline and Storage Ltd and United Kingdom Oil Pipelines Ltd; Claimant: BP Oil UK Limited; Claimant: Shell UK Limited; Defendant/part 20 Claimant: Total Downstream UK PLC; Defendant/part 20 Claimant: Total UK Limited; Defendant/part 20 Defendant: Hertfordshire Oil Storage Limited; Part 20 Defendant/third Party: Chevron Limited; Fourth Party: Total Milford Haven Refinery Limited
Jurisdiction
England and Wales
Judgment Date
22 April 2009
Procedural Posture
Commercial Court Post Judgment Costs Hearing / Post Judgment, Costs and Consequential Orders
Outcome
Indemnity costs awarded to claimants against Total up to 23 May 2008 for negligence; standard costs thereafter and on foreseeability; BP awarded indemnity costs from 28 June 2008; Shell and WLPS/UKOP awarded full costs as specified; interest on costs set as ordered; assessment of Chevron's costs not postponed.
Legal Topics
Indemnity Costs, Negligence, Foreseeability, Vicarious Liability, Interest on Costs, Part 36 Offers, Costs Assessment
Civil Procedure Tort Law Commercial Law Indemnity Costs Negligence Foreseeability Vicarious Liability Interest on Costs +2 more

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Parties

Colour Quest Limited and Others

Claimants

Douglas Jessop Claimants

Claimants

West London Pipeline and Storage Ltd and United Kingdom Oil Pipelines Ltd

Claimants

BP Oil UK Limited

Claimant

Shell UK Limited

Claimant

Total Downstream UK PLC

Defendant/part 20 Claimant

Total UK Limited

Defendant/part 20 Claimant

Hertfordshire Oil Storage Limited

Defendant/part 20 Defendant

Chevron Limited

Part 20 Defendant/third Party

Total Milford Haven Refinery Limited

Fourth Party

Procedural Posture

Commercial Court Post Judgment Costs Hearing / Post Judgment, Costs and Consequential Orders

Legal Issues

  1. 1 Whether indemnity costs should be awarded against Total for unreasonable conduct in contesting negligence and foreseeability
  2. 2 Whether Chevron is entitled to indemnity costs for alleged dishonesty by Total
  3. 3 Whether BP is entitled to indemnity costs and from what date following a Part 36 offer

Ratio Decidendi

Indemnity costs were justified against Total up to 23 May 2008 for unreasonable denial of negligence, but not for the foreseeability issue or for Chevron's claims of dishonesty. BP was entitled to indemnity costs from 28 June 2008 following clarification of its Part 36 offer. Shell was entitled to costs for the lost fuel claim, and WLPS/UKOP was entitled to full costs. Interest on costs was set at three months LIBOR +4% for BP, and Judgment Act interest on other costs was postponed to six months from judgment. Assessment of Chevron's costs was not postponed pending appeal.

Court Disposition

Indemnity costs awarded to claimants against Total up to 23 May 2008 for negligence; standard costs thereafter and on foreseeability; BP awarded indemnity costs from 28 June 2008; Shell and WLPS/UKOP awarded full costs as specified; interest on costs set as ordered; assessment of Chevron's costs not postponed.

Orders

  • Claimants recover indemnity costs from Total up to 23 May 2008 on negligence issue
  • Claimants recover standard costs thereafter and on foreseeability issue