Dempsey v Johnstone

Dempsey v Johnstone

The Court of Appeal held that the judge at first instance applied the correct legal test but erred in concluding that the solicitors were negligent. The pleadings were capable of supporting the claim, and without waiver of privilege, it could not be inferred that the solicitors' conduct was negligent. Therefore, the wasted costs order was not justified.

Parties
Claimant: Maurice Dempsey; Respondent: Allan Johnstone
Jurisdiction
England and Wales
Judgment Date
30 July 2003
Procedural Posture
Civil Appeal / Appeal From Liverpool County Court on a Wasted Costs Order Under Section 51(6) of the Supreme Court Act 1981
Outcome
Appeal allowed
Legal Topics
Wasted Costs Orders, Negligence of Legal Representatives, Abuse of Process, Legal Aid
Civil Procedure Legal Profession Wasted Costs Orders Negligence of Legal Representatives Abuse of Process Legal Aid

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 13 Party arguments 2
Sign in to unlock

Parties

Maurice Dempsey

Claimant

Allan Johnstone

Respondent

Procedural Posture

Civil Appeal / Appeal From Liverpool County Court on a Wasted Costs Order Under Section 51(6) of the Supreme Court Act 1981

Legal Issues

  1. 1 Whether the solicitors for the claimant acted negligently in continuing litigation after it was allegedly hopeless
  2. 2 Whether a wasted costs order was properly made under section 51(6) of the Supreme Court Act 1981
  3. 3 Whether the test for negligence was correctly applied by the lower court

Ratio Decidendi

The Court of Appeal held that the judge at first instance applied the correct legal test but erred in concluding that the solicitors were negligent. The pleadings were capable of supporting the claim, and without waiver of privilege, it could not be inferred that the solicitors' conduct was negligent. Therefore, the wasted costs order was not justified.

Court Disposition

Appeal allowed

Orders

  • Wasted costs order set aside
  • Costs of the appeal and below awarded to the appellants, subject to detailed assessment if not agreed