Kastor Navigation Co Ltd. & Anor v AGF M.A.T & Ors

Kastor Navigation Co Ltd. & Anor v AGF M.A.T & Ors

The claim for actual total loss significantly increased the length and cost of the proceedings. The modern approach to costs under the CPR requires issue-based orders where appropriate. The Claimants are entitled to recover only 15% of their costs (reflecting the CTL issue), and must pay 85% of the Defendants' costs (reflecting the ATL issue). The Part 36 offer does not entitle the Claimants to all post-offer costs, as 'his costs' in CPR 36.21 refers to such costs as would otherwise be awarded, not all costs incurred after the offer.

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 AXA Global Risks); Defendant: Unitas Gjensidig Assuranseforening
Jurisdiction
England and Wales
Judgment Date
17 March 2003
Procedural Posture
Commercial Insurance Claim (marine Insurance) / Post Trial Costs Ruling
Outcome
Issue-based costs order; claimants partially successful
Legal Topics
Costs Orders, Issue Based Costs, Part 36 Offers, Marine Insurance, Constructive Total Loss, Actual Total Loss
Civil Procedure Insurance Law Costs Orders Issue Based Costs Part 36 Offers Marine Insurance Constructive Total Loss Actual Total Loss

Case Brief

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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 AXA Global Risks)

Defendant

Unitas Gjensidig Assuranseforening

Defendant

Procedural Posture

Commercial Insurance Claim (marine Insurance) / Post Trial Costs Ruling

Legal Issues

  1. 1 Whether costs should follow the event or be apportioned on an issue basis
  2. 2 Interpretation and application of CPR 44.3 and CPR 36.21 in the context of issue-based costs
  3. 3 Entitlement to indemnity costs after a successful Part 36 offer

Ratio Decidendi

The claim for actual total loss significantly increased the length and cost of the proceedings. The modern approach to costs under the CPR requires issue-based orders where appropriate. The Claimants are entitled to recover only 15% of their costs (reflecting the CTL issue), and must pay 85% of the Defendants' costs (reflecting the ATL issue). The Part 36 offer does not entitle the Claimants to all post-offer costs, as 'his costs' in CPR 36.21 refers to such costs as would otherwise be awarded, not all costs incurred after the offer.

Court Disposition

Issue-based costs order; claimants partially successful

Orders

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