Kastor Navigation Co Ltd. & Anor v AGF M.A.T & Ors [2003] EWHC 472 (Comm) (17 March 2003)

Kastor Navigation Co Ltd. & Anor v AGF M.A.T & Ors [2003] EWHC 472 (Comm) (17 March 2003)

The claimants' pursuit of the actual total loss claim, on which they failed, substantially increased the length and cost of the proceedings. Applying the modern approach to costs under the CPR, the court ordered issue-based costs: claimants recover 15% of their costs (attributable to the successful CTL issue), and pay 85% of the defendants' costs (attributable to the unsuccessful actual total loss issue). The claimants are not entitled to all post-Part 36 offer costs on an indemnity basis, as it would be unjust in light of their partial failure and the increased costs caused.

Citation
[2003] EWHC 472 (Comm)
Parties
Claimant: Kastor Navigation Co Ltd; Claimant: Atlantic Bank of New York; Defendant: AGF M. A. T; Defendant: AXA Global Risks (UK); Defendant: Societa Italiana Assicurazionie Reassicurazioni S.p.A; Defendant: S.A.S.A S.p.A; Defendant: AXA Corporate Solutions (Formerly known as AXA Global Risks); Defendant: Unitas Gjensidig Assuranseforening
Jurisdiction
England and Wales
Judgment Date
17 March 2003
Procedural Posture
Commercial Insurance Claim / Post Trial Costs Judgment
Outcome
Issue-based costs order; partial costs recovery for claimants; majority of costs awarded to defendants.
Legal Topics
Costs Orders, Part 36 Offers, Constructive Total Loss, Actual Total Loss, Marine Insurance, Issue Based Costs, Interest on Costs
Civil Procedure Insurance Law Maritime Law Costs Orders Part 36 Offers Constructive Total Loss Actual Total Loss Marine Insurance +2 more

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Parties

Kastor Navigation Co Ltd

Claimant

Atlantic Bank of New York

Claimant

AGF M. A. T

Defendant

AXA Global Risks (UK)

Defendant

Societa Italiana Assicurazionie Reassicurazioni S.p.A

Defendant

S.A.S.A S.p.A

Defendant

AXA Corporate Solutions (Formerly known as AXA Global Risks)

Defendant

Unitas Gjensidig Assuranseforening

Defendant

Procedural Posture

Commercial Insurance Claim / Post Trial Costs Judgment

Legal Issues

  1. 1 Whether costs should follow the event or be apportioned on an issue basis where the claimant succeeded overall but failed on a significant issue
  2. 2 Whether the claimant is entitled to all post-Part 36 offer costs on an indemnity basis under CPR 36.21
  3. 3 Whether the pursuit of an unsuccessful actual total loss claim significantly increased the costs and length of proceedings

Ratio Decidendi

The claimants' pursuit of the actual total loss claim, on which they failed, substantially increased the length and cost of the proceedings. Applying the modern approach to costs under the CPR, the court ordered issue-based costs: claimants recover 15% of their costs (attributable to the successful CTL issue), and pay 85% of the defendants' costs (attributable to the unsuccessful actual total loss issue). The claimants are not entitled to all post-Part 36 offer costs on an indemnity basis, as it would be unjust in light of their partial failure and the increased costs caused.

Court Disposition

Issue-based costs order; partial costs recovery for claimants; majority of costs awarded to defendants.

Orders

  • Defendants to pay claimants 15% of claimants' costs.
  • Claimants to pay defendants 85% of defendants' costs.