Alpha Chauffeurs Ltd. v Citygate Dealership Ltd. (t/a HR Owen) & Anor [2003] EWCA Civ 207 (20 February 2003)

Alpha Chauffeurs Ltd. v Citygate Dealership Ltd. (t/a HR Owen) & Anor [2003] EWCA Civ 207 (20 February 2003)

The trial judge erred in principle by making Lombard North Central bear the costs of the action, including those attributable to Alpha's direct claim against H R Owen, contrary to the general rule that the unsuccessful party should bear the costs. The proper order is that H R Owen, as the party ultimately liable, should bear the costs incurred by Lombard North Central and those for which Lombard North Central is liable to Alpha, except for costs solely attributable to Alpha's direct claim against H R Owen.

Citation
[2003] EWCA Civ 207
Parties
Claimant: Alpha Chauffeurs Limited; First Defendant: Citygate Dealership Limited (trading as HR Owen); Second Defendant: Lombard North Central PLC
Jurisdiction
England and Wales
Judgment Date
20 February 2003
Procedural Posture
Civil Appeal / Appeal From Queen's Bench Division on Costs Order
Outcome
Appeal allowed; costs orders varied
Legal Topics
Sale of Goods, Hire Purchase, Implied Terms, Costs Orders, Rescission, Damages
Contract Law Commercial Law Civil Procedure Sale of Goods Hire Purchase Implied Terms Costs Orders Rescission +1 more

Case Brief

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Parties

Alpha Chauffeurs Limited

Claimant

Citygate Dealership Limited (trading as HR Owen)

First Defendant

Lombard North Central PLC

Second Defendant

Procedural Posture

Civil Appeal / Appeal From Queen's Bench Division on Costs Order

Legal Issues

  1. 1 Whether the costs orders made by the trial judge properly reflected the outcome and general rule on costs
  2. 2 Whether the judge erred in principle in allocating costs between the parties, particularly as between Lombard North Central and H R Owen

Ratio Decidendi

The trial judge erred in principle by making Lombard North Central bear the costs of the action, including those attributable to Alpha's direct claim against H R Owen, contrary to the general rule that the unsuccessful party should bear the costs. The proper order is that H R Owen, as the party ultimately liable, should bear the costs incurred by Lombard North Central and those for which Lombard North Central is liable to Alpha, except for costs solely attributable to Alpha's direct claim against H R Owen.

Court Disposition

Appeal allowed; costs orders varied

Orders

  • Paragraphs 6 and 7 of the Deputy Judge's order set aside and replaced as per paragraph 33 of the judgment.
  • Second defendant to pay 80% of claimant's costs of the action (excluding costs solely attributable to the claim against first defendant and costs payable by claimant to first defendant), and claimant's costs of the second defendant's counter-claim.