Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors (Costs) [2021] EWHC 1222 (Comm) (11 May 2021)

Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors (Costs) [2021] EWHC 1222 (Comm) (11 May 2021)

Given the extraordinary nature of the litigation, including the scale, reputational risk, political dimension, and the aggressive, resource-unconstrained approach by SKAT, it is just that costs be assessed on the indemnity basis for all defendants, with the burden on SKAT to show any costs were unreasonably incurred or unreasonable in amount.

Citation
[2021] EWHC 1222 (Comm)
Parties
Claimant: SKATTEFORVALTNINGEN (the Danish Customs and Tax Administration); Defendants: Solo Capital Partners LLP (in special administration) and others; Defendants: Sanjay Shah Defendants; Defendants: DWF Defendants; Defendant: Acupay System LLC; Defendants: Messrs Knott & Hoogewerf; Defendant: Anne Stratford; Defendant: ED&F Man Capital Markets Ltd; Defendants: PS/GoC Defendants; Defendant: Paul Preston; Defendant: Martin Smith; Defendants: Lui Defendants; Defendants: HK Defendants; Defendant: Jas Bains; Defendant: Daniel Fletcher; Defendant: Jonathan Godson; Defendant: Mankash Jain; Defendant: Anthony Patterson; Defendants: Edo Barac Defendants; Defendant: IPIS UK (Battersea London 1) Ltd (in liquidation)
Jurisdiction
England and Wales
Judgment Date
11 May 2021
Procedural Posture
Commercial Court Civil Claim / Post Trial, Costs and Consequential Orders Following Preliminary Issue Judgment
Outcome
Costs to be assessed on the indemnity basis in favour of all defendants; SKAT's application for a reduction in costs rejected; SKAT's application for a stay on payments on account granted only for certain defendants, conditional on payment into court.
Legal Topics
Indemnity Costs, Revenue Rule, Jurisdiction, Fraud Allegations, Proportionality of Costs
Civil Procedure Costs Private International Law Indemnity Costs Revenue Rule Jurisdiction Fraud Allegations Proportionality of Costs

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Parties

SKATTEFORVALTNINGEN (the Danish Customs and Tax Administration)

Claimant

Solo Capital Partners LLP (in special administration) and others

Defendants

Sanjay Shah Defendants

Defendants

DWF Defendants

Defendants

Acupay System LLC

Defendant

Messrs Knott & Hoogewerf

Defendants

Anne Stratford

Defendant

ED&F Man Capital Markets Ltd

Defendant

PS/GoC Defendants

Defendants

Paul Preston

Defendant

Martin Smith

Defendant

Lui Defendants

Defendants

HK Defendants

Defendants

Jas Bains

Defendant

Daniel Fletcher

Defendant

Jonathan Godson

Defendant

Mankash Jain

Defendant

Anthony Patterson

Defendant

Edo Barac Defendants

Defendants

IPIS UK (Battersea London 1) Ltd (in liquidation)

Defendant

Procedural Posture

Commercial Court Civil Claim / Post Trial, Costs and Consequential Orders Following Preliminary Issue Judgment

Legal Issues

  1. 1 Whether costs should be assessed on the indemnity basis following dismissal of SKAT's claims
  2. 2 Whether a reduction in costs is warranted where defendants did not succeed on every sub-issue
  3. 3 Whether payments on account of costs should be stayed for certain defendants

Ratio Decidendi

Given the extraordinary nature of the litigation, including the scale, reputational risk, political dimension, and the aggressive, resource-unconstrained approach by SKAT, it is just that costs be assessed on the indemnity basis for all defendants, with the burden on SKAT to show any costs were unreasonably incurred or unreasonable in amount.

Court Disposition

Costs to be assessed on the indemnity basis in favour of all defendants; SKAT's application for a reduction in costs rejected; SKAT's application for a stay on payments on account granted only for certain defendants, conditional on payment into court.

Orders

  • Costs payable by SKAT to all defendants to be assessed on the indemnity basis.
  • No percentage reduction in costs for defendants who did not succeed on every sub-issue.