Grizzly Business Ltd v Stena Drilling Ltd & Anor [2017] EWCA Civ 94 (24 February 2017)

Grizzly Business Ltd v Stena Drilling Ltd & Anor [2017] EWCA Civ 94 (24 February 2017)

The Court of Appeal upheld the trial judge's findings that an oral agreement for a success fee was made between Grizzly Business Limited and Stena Drillmax 1 Limited, that the absence of written confirmation did not preclude the existence of such an agreement, and that Stena Drilling Limited should pay 90% of the claimant's costs as it funded and controlled the defence for the benefit of Stena Drillmax 1 Limited.

Citation
[2017] EWCA Civ 94
Parties
Claimant/respondent: Grizzly Business Limited; Defendant/appellant: Stena Drilling Limited; Defendant/appellant: Stena Drillmax 1 Limited
Jurisdiction
England and Wales
Judgment Date
24 February 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeals dismissed
Legal Topics
Oral Contracts, Success Fees, Consultancy Agreements, Costs Orders, Non Party Costs Liability, Appellate Review of Findings of Fact
Contract Law Civil Procedure Oral Contracts Success Fees Consultancy Agreements Costs Orders Non Party Costs Liability Appellate Review of Findings of Fact

Case Brief

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Parties

Grizzly Business Limited

Claimant/respondent

Stena Drilling Limited

Defendant/appellant

Stena Drillmax 1 Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Whether an oral agreement for a success fee of 0.25% of revenue was made between Grizzly Business Limited and Stena Drillmax 1 Limited on 29 November 2011
  2. 2 Whether the absence of contemporaneous written confirmation precluded the existence of such an agreement
  3. 3 Whether the first defendant (Stena Drilling Limited) should be liable for the claimant's costs despite not being the contracting party

Ratio Decidendi

The Court of Appeal upheld the trial judge's findings that an oral agreement for a success fee was made between Grizzly Business Limited and Stena Drillmax 1 Limited, that the absence of written confirmation did not preclude the existence of such an agreement, and that Stena Drilling Limited should pay 90% of the claimant's costs as it funded and controlled the defence for the benefit of Stena Drillmax 1 Limited.

Court Disposition

Appeals dismissed

Orders

  • The Appellants' appeals against the judgments of Mr Justice Teare dated 13 June 2014 and 30 July 2014 are dismissed.
  • The stay contained in paragraph 2 of the Order of Lord Justice Christopher Clarke dated 6 July 2015 is lifted.