Northrop Grumman Mission Systems Europe Ltd v BAE Systems (Al Diriyah C4I) Ltd (No 2) [2014] EWHC 3148 (TCC) (03 October 2014)

Northrop Grumman Mission Systems Europe Ltd v BAE Systems (Al Diriyah C4I) Ltd (No 2) [2014] EWHC 3148 (TCC) (03 October 2014)

BAE's refusal to mediate was unreasonable given the nature of the dispute and the reasonable prospects of mediation, but this was offset by NGM's failure to accept BAE's settlement offer, resulting in no modification to the general rule that the unsuccessful party pays the successful party's costs.

Citation
[2014] EWHC 3148 (TCC)
Parties
Claimant: Northrop Grumman Mission Systems Europe Limited; Defendant: BAE Systems (Al Diriyah C4I) Limited
Jurisdiction
England and Wales
Judgment Date
03 October 2014
Procedural Posture
Part 8 Proceedings / Costs Judgment Following Substantive Decision
Outcome
Claimant's application for a reduction in costs refused; Defendant awarded costs without reduction.
Legal Topics
Costs, Alternative Dispute Resolution (adr), Contract Interpretation, Refusal to Mediate
Civil Procedure Commercial Law Costs Alternative Dispute Resolution (adr) Contract Interpretation Refusal to Mediate

Case Brief

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Parties

Northrop Grumman Mission Systems Europe Limited

Claimant

BAE Systems (Al Diriyah C4I) Limited

Defendant

Procedural Posture

Part 8 Proceedings / Costs Judgment Following Substantive Decision

Legal Issues

  1. 1 Whether BAE's refusal to mediate was unreasonable and should result in a reduction of its costs recovery
  2. 2 Appropriate order as to costs in light of parties' conduct regarding mediation and settlement offers

Ratio Decidendi

BAE's refusal to mediate was unreasonable given the nature of the dispute and the reasonable prospects of mediation, but this was offset by NGM's failure to accept BAE's settlement offer, resulting in no modification to the general rule that the unsuccessful party pays the successful party's costs.

Court Disposition

Claimant's application for a reduction in costs refused; Defendant awarded costs without reduction.

Orders

  • NGM to pay BAE its costs, to be assessed on a standard basis if not agreed, without any reduction.