Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors (Costs)

Skatteforvaltningen (The Danish Customs And Tax Administration) v Solo Capital Partners LLP & Ors (Costs)

Given the extraordinary nature of the litigation, the scale and conduct of SKAT, the reputational risks to defendants, and the political and financial resources deployed, the case was 'out of the norm' and justified assessment of costs on the indemnity basis. It would be unjust to limit defendants’ recovery by proportionality or to require them to prove reasonableness; SKAT must show any costs to be disallowed.

Parties
Claimant: Skatteforvaltningen (the Danish Customs and Tax Administration); Defendants: Solo Capital Partners LLP (in special administration) and many 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
Civil (commercial) / Costs Ruling Following Dismissal of Claims at Preliminary Issue Trial
Outcome
Costs to be assessed on the indemnity basis; SKAT to pay all defendants’ costs, subject to assessment if not agreed.
Legal Topics
Indemnity Costs, Proportionality of Costs, Allegations of Fraud, Litigation Conduct
Civil Procedure Costs Indemnity Costs Proportionality of Costs Allegations of Fraud Litigation Conduct

Case Brief

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Parties

Skatteforvaltningen (the Danish Customs and Tax Administration)

Claimant

Solo Capital Partners LLP (in special administration) and many 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

Civil (commercial) / Costs Ruling Following Dismissal of Claims at Preliminary Issue Trial

Legal Issues

  1. 1 Whether costs should be assessed on the indemnity basis or standard basis
  2. 2 Whether SKAT should pay all defendants’ costs
  3. 3 Whether payments on account of costs should be stayed for certain defendants

Ratio Decidendi

Given the extraordinary nature of the litigation, the scale and conduct of SKAT, the reputational risks to defendants, and the political and financial resources deployed, the case was 'out of the norm' and justified assessment of costs on the indemnity basis. It would be unjust to limit defendants’ recovery by proportionality or to require them to prove reasonableness; SKAT must show any costs to be disallowed.

Court Disposition

Costs to be assessed on the indemnity basis; SKAT to pay all defendants’ costs, subject to assessment if not agreed.

Orders

  • SKAT to pay all defendants’ costs of the proceedings, to be assessed on the indemnity basis if not agreed.
  • No percentage reduction to defendants’ costs as sought by SKAT.