Miskin & Anor v St John Vaughan [2002] EWHC 9007 (Costs) (18 September 2002)

Miskin & Anor v St John Vaughan [2002] EWHC 9007 (Costs) (18 September 2002)

There was a co-existing obligation on both the Defendants and their insurers to pay the solicitors' costs, so the indemnity principle was not breached. As neither the Defendants nor their insurers could recover VAT as input tax, VAT was payable by the Appellants on the assessed costs.

Citation
[2002] EWHC 9007 (Costs)
Parties
Claimants/appellants: Mr & Mrs Miskin; Defendants/respondents: St John Vaughan (Defendant firm, estate agents)
Jurisdiction
England and Wales
Judgment Date
18 September 2002
Procedural Posture
Costs Appeal / Appeal From Detailed Assessment by Chief Costs Officer
Outcome
Appeal dismissed
Legal Topics
Indemnity Principle, VAT on Legal Costs, Detailed Assessment of Costs

Case Brief

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Parties

Mr & Mrs Miskin

Claimants/appellants

St John Vaughan (Defendant firm, estate agents)

Defendants/respondents

Procedural Posture

Costs Appeal / Appeal From Detailed Assessment by Chief Costs Officer

  1. 1 Whether the indemnity principle precludes the Defendants from recovering costs and VAT from the Appellants
  2. 2 Whether VAT is payable by the Appellants on the Defendants' costs

Ratio Decidendi

There was a co-existing obligation on both the Defendants and their insurers to pay the solicitors' costs, so the indemnity principle was not breached. As neither the Defendants nor their insurers could recover VAT as input tax, VAT was payable by the Appellants on the assessed costs.

Court Disposition

Appeal dismissed

Orders

  • The assessed costs are reduced to £28,700 plus VAT.
  • VAT is payable by the Appellants on the assessed costs.