Excalibur Ventures LLC v Texas Keystone Inc & Ors

Excalibur Ventures LLC v Texas Keystone Inc & Ors

Interest at the Judgment Act rate is payable by funders from the date of the costs order against them, not from the earlier date when the funded party became liable. Interim payments on account of costs should be set at 80% of the claimed amount, reflecting a reasonable estimate of likely recovery. Apportionment of costs among funders must be based on the amount and timing of their contributions, avoiding double counting, and ensuring that no funder is liable for costs incurred before their involvement. Funders are jointly and severally liable for costs incurred during their respective periods of funding, subject to individual caps.

Parties
Claimant: Excalibur Ventures LLC; Defendant/costs Claimant: Texas Keystone Inc.; Defendant/costs Claimant: Gulf Keystone Petroleum Limited; Defendant/costs Claimant: Gulf Keystone Petroleum International Limited; Defendant/costs Claimant: Gulf Keystone Petroleum (UK) Limited; Costs Defendant: Psari Holdings Limited; Costs Defendant: Mr Andonis Lemos; Costs Defendant: Blackrobe Capital Partners LLC; Costs Defendant: Blackrobe AEO I Investors LLC; Costs Defendant: Platinum Partners Value Arbitrage Fund LP; Costs Defendant: Hamilton Capital LLC; Costs Defendant: JH Funding LLC; Costs Defendant: Huron Capital LLC; Costs Defendant: Platinum Partners Credit Opportunities Master Fund LP
Jurisdiction
England and Wales
Judgment Date
03 February 2015
Procedural Posture
Commercial Costs Application / Post Judgment Costs Order and Apportionment
Outcome
Costs order made; permission to appeal granted on specified grounds
Legal Topics
Third Party Funding Liability, Apportionment of Costs, Interest on Costs, Indemnity Costs, Interim Payments

Case Brief

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Parties

Excalibur Ventures LLC

Claimant

Texas Keystone Inc.

Defendant/costs Claimant

Gulf Keystone Petroleum Limited

Defendant/costs Claimant

Gulf Keystone Petroleum International Limited

Defendant/costs Claimant

Gulf Keystone Petroleum (UK) Limited

Defendant/costs Claimant

Psari Holdings Limited

Costs Defendant

Mr Andonis Lemos

Costs Defendant

Blackrobe Capital Partners LLC

Costs Defendant

Blackrobe AEO I Investors LLC

Costs Defendant

Platinum Partners Value Arbitrage Fund LP

Costs Defendant

Hamilton Capital LLC

Costs Defendant

JH Funding LLC

Costs Defendant

Huron Capital LLC

Costs Defendant

Platinum Partners Credit Opportunities Master Fund LP

Costs Defendant

Procedural Posture

Commercial Costs Application / Post Judgment Costs Order and Apportionment

  1. 1 From what date should interest at the Judgment Act rate run against funders?
  2. 2 What is a reasonable sum for interim payment on account of costs?
  3. 3 How should liability for costs be apportioned among multiple funders?

Ratio Decidendi

Interest at the Judgment Act rate is payable by funders from the date of the costs order against them, not from the earlier date when the funded party became liable. Interim payments on account of costs should be set at 80% of the claimed amount, reflecting a reasonable estimate of likely recovery. Apportionment of costs among funders must be based on the amount and timing of their contributions, avoiding double counting, and ensuring that no funder is liable for costs incurred before their involvement. Funders are jointly and severally liable for costs incurred during their respective periods of funding, subject to individual caps.

Court Disposition

Costs order made; permission to appeal granted on specified grounds

Orders

  • Interest on costs payable at the Judgment Act rate from the date of the October 2014 judgment.
  • Interim payment on account of costs and interest set at 80% of the claimed amount.