Two Right Feet Ltd v National Westminster Bank Plc & Ors [2017] EWHC 1745 (Ch) (16 June 2017)

Two Right Feet Ltd v National Westminster Bank Plc & Ors [2017] EWHC 1745 (Ch) (16 June 2017)

The claimant's conduct, including making serious and unjustified allegations, failing to properly investigate the claim, exaggerating quantum, failing to comply with disclosure obligations, and causing unnecessary delay, was unreasonable and took the case out of the norm, justifying an order for indemnity costs in favour of the defendants.

Citation
[2017] EWHC 1745 (Ch)
Parties
Claimant: Two Right Feet Limited (in Liquidation); First Defendant: National Westminster Bank PLC; Second Defendant: Royal Bank of Scotland PLC; Third Defendant: KPMG LLP
Jurisdiction
England and Wales
Judgment Date
16 June 2017
Procedural Posture
Civil (costs Application) / Post Discontinuance, Application to Vary Costs Order
Outcome
Application granted. Costs order varied to indemnity basis.
Legal Topics
Indemnity Costs, Discontinuance, Litigation Conduct, Disclosure Obligations
Civil Procedure Costs Indemnity Costs Discontinuance Litigation Conduct Disclosure Obligations

Case Brief

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Parties

Two Right Feet Limited (in Liquidation)

Claimant

National Westminster Bank PLC

First Defendant

Royal Bank of Scotland PLC

Second Defendant

KPMG LLP

Third Defendant

Procedural Posture

Civil (costs Application) / Post Discontinuance, Application to Vary Costs Order

Legal Issues

  1. 1 Whether the defendants are entitled to indemnity costs following the claimant's discontinuance of proceedings
  2. 2 Whether the claimant's conduct justifies departure from the standard basis of costs

Ratio Decidendi

The claimant's conduct, including making serious and unjustified allegations, failing to properly investigate the claim, exaggerating quantum, failing to comply with disclosure obligations, and causing unnecessary delay, was unreasonable and took the case out of the norm, justifying an order for indemnity costs in favour of the defendants.

Court Disposition

Application granted. Costs order varied to indemnity basis.

Orders

  • Claimant to pay the defendants' costs on the indemnity basis.