Motto & Ors v Trafigura Ltd & Anor (Rev 3)

Motto & Ors v Trafigura Ltd & Anor (Rev 3)

Where the total costs claimed are disproportionate, only those items that are necessary, reasonable, and proportionate are recoverable. The necessity test applies to each item in the bill of costs. Costs for setting up CFAs and ATE insurance are not recoverable. The success fee uplift of 58% and the ATE premium of £9,677,554 (based on a 65% prospect of success) are reasonable. Costs for vetting, registration, medical reports, and abandoned claims are recoverable if necessary and proportionate. The cut-off date for distribution costs is set aside; recoverability depends on necessity and reasonableness.

Parties
Claimants/appellants: Yao Essaie Motto & Others; Defendant/respondent: Trafigura Limited; Defendant/respondent: Trafigura Beheer BV
Jurisdiction
England and Wales
Judgment Date
12 October 2011
Procedural Posture
Civil Appeal (costs Assessment) / Appeal From High Court (senior Costs Judge) to Court of Appeal
Outcome
Appeal and cross-appeal allowed in part; orders of the Senior Costs Judge varied as specified.
Legal Topics
Proportionality of Costs, Group Litigation, Conditional Fee Agreements (cfa), After the Event (ate) Insurance, Success Fees, Detailed Assessment of Costs
Civil Procedure Costs Proportionality of Costs Group Litigation Conditional Fee Agreements (cfa) After the Event (ate) Insurance Success Fees Detailed Assessment of Costs

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 12 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Yao Essaie Motto & Others

Claimants/appellants

Trafigura Limited

Defendant/respondent

Trafigura Beheer BV

Defendant/respondent

Procedural Posture

Civil Appeal (costs Assessment) / Appeal From High Court (senior Costs Judge) to Court of Appeal

Legal Issues

  1. 1 Whether the necessity test applies to each item in the bill of costs when overall costs are disproportionate
  2. 2 Recoverability of vetting, registration, and distribution costs in group litigation
  3. 3 Effect of non-compliance with Pre-Action Protocols on costs

Ratio Decidendi

Where the total costs claimed are disproportionate, only those items that are necessary, reasonable, and proportionate are recoverable. The necessity test applies to each item in the bill of costs. Costs for setting up CFAs and ATE insurance are not recoverable. The success fee uplift of 58% and the ATE premium of £9,677,554 (based on a 65% prospect of success) are reasonable. Costs for vetting, registration, medical reports, and abandoned claims are recoverable if necessary and proportionate. The cut-off date for distribution costs is set aside; recoverability depends on necessity and reasonableness.

Court Disposition

Appeal and cross-appeal allowed in part; orders of the Senior Costs Judge varied as specified.

Orders

  • Necessity test applies to each item in the bill of costs.
  • Costs for setting up CFAs and ATE insurance not recoverable.