Farrell & Anor v Direct Accident Management Services Ltd & Anor [2009] EWCA Civ 769 (17 June 2009)

Farrell & Anor v Direct Accident Management Services Ltd & Anor [2009] EWCA Civ 769 (17 June 2009)

DAMS was the instigator, controller, and commercial beneficiary of the litigation, and the judge's exercise of discretion in awarding 80% of the costs was justified and within the permissible range, notwithstanding DAMS' non-participation in the fraud and the lack of early notice.

Citation
[2009] EWCA Civ 769
Parties
Appellants: Farrell & Anr; Respondents: Direct Accident Management Services Ltd & Anr
Jurisdiction
England and Wales
Judgment Date
17 June 2009
Procedural Posture
Civil Appeal / Appeal From Third Party Costs Order
Outcome
Appeal dismissed
Legal Topics
Third Party Costs Orders, Litigation Funding, Fraud in Civil Claims, Discretion in Costs Awards
Civil Procedure Costs Third Party Costs Orders Litigation Funding Fraud in Civil Claims Discretion in Costs Awards

Case Brief

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Parties

Farrell & Anr

Appellants

Direct Accident Management Services Ltd & Anr

Respondents

Procedural Posture

Civil Appeal / Appeal From Third Party Costs Order

Legal Issues

  1. 1 Whether the judge properly exercised discretion in making a third-party costs order against DAMS
  2. 2 Whether DAMS had sufficient control and interest in the litigation to justify a costs order
  3. 3 Whether lack of early notice to DAMS was material to the costs order

Ratio Decidendi

DAMS was the instigator, controller, and commercial beneficiary of the litigation, and the judge's exercise of discretion in awarding 80% of the costs was justified and within the permissible range, notwithstanding DAMS' non-participation in the fraud and the lack of early notice.

Court Disposition

Appeal dismissed

Orders

  • DAMS to pay 80% of Birmingham City Council's costs of defending the claim