Phones 4u Ltd v EE Ltd & Ors [2020] EWHC 1943 (Ch) (20 July 2020)

Phones 4u Ltd v EE Ltd & Ors [2020] EWHC 1943 (Ch) (20 July 2020)

The court found that while it is possible indemnity costs could be ordered, there is not a significant or real prospect justifying higher security for costs; the allegations are not out of the norm for competition law claims, and the standard basis should apply.

Citation
[2020] EWHC 1943 (Ch)
Parties
Claimant: Phones 4U Limited (In Administration); First Defendant: EE Limited; Second Defendant: Deutsche Telekom AG; Third Defendant: Orange SA; Fourth Defendant: Vodafone Limited; Fifth Defendant: Vodafone Group Public Limited Company; Sixth Defendant: Telefonica UK Limited; Seventh Defendant: Telefónica, S. A.; Eighth Defendant: Telefonica O2 Holdings Limited
Jurisdiction
England and Wales
Judgment Date
20 July 2020
Procedural Posture
Application for Security for Costs / Interlocutory Judgment
Outcome
Application dismissed
Legal Topics
Security for Costs, Indemnity Costs, Private Enforcement of Competition Law
Competition Law Civil Procedure Security for Costs Indemnity Costs Private Enforcement of Competition Law

Case Brief

Summary, issues, holding and outcome

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Parties

Phones 4U Limited (In Administration)

Claimant

EE Limited

First Defendant

Deutsche Telekom AG

Second Defendant

Orange SA

Third Defendant

Vodafone Limited

Fourth Defendant

Vodafone Group Public Limited Company

Fifth Defendant

Telefonica UK Limited

Sixth Defendant

Telefónica, S. A.

Seventh Defendant

Telefonica O2 Holdings Limited

Eighth Defendant

Procedural Posture

Application for Security for Costs / Interlocutory Judgment

Legal Issues

  1. 1 Whether security for costs should be ordered at a higher level reflecting a potential award of indemnity costs
  2. 2 Appropriate basis for security for costs in competition law claims

Ratio Decidendi

The court found that while it is possible indemnity costs could be ordered, there is not a significant or real prospect justifying higher security for costs; the allegations are not out of the norm for competition law claims, and the standard basis should apply.

Court Disposition

Application dismissed

Orders

  • Claimant to provide security to First to Third Defendants on the same basis as to other Defendants (standard basis, not indemnity costs)