Brit Inns Ltd & Anor v BDW Trading Ltd (No 2)

Brit Inns Ltd & Anor v BDW Trading Ltd (No 2)

Claimants in the main action are treated as the successful party up to 30 May 2012 but, due to exaggerated claims, poor conduct, and failure to provide proper information, are only entitled to 60% of their costs (excluding all expert-related costs and late supplementary statements). From 30 May 2012, following the defendant's Part 44 offer, claimants must pay the defendant's costs. In the uninsured action, claimants must pay 90% of the defendant's costs due to the unjustified separate action, minimal recovery, and the defendant's bettered offer.

Parties
Claimant: Brit Inns Limited (in liquidation); Claimant: Vincent Barber; Claimant: Linda Lawless; Claimant: Stephen Katz (Acting as Liquidator of Brit Inns Ltd); Defendant: BDW Trading Limited; Third Party/part 20 Defendant: J Reddington Limited
Jurisdiction
England and Wales
Judgment Date
07 September 2012
Procedural Posture
Civil (commercial, Costs) / Post Trial, Costs Judgment
Outcome
Costs apportioned; claimants recover part of their costs in main action, pay majority of costs in uninsured action.
Legal Topics
Costs Orders, Part 36 Offers, Part 44 Offers, Exaggeration of Claims, Conduct of Litigation
Civil Procedure Costs Costs Orders Part 36 Offers Part 44 Offers Exaggeration of Claims Conduct of Litigation

Case Brief

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Parties

Brit Inns Limited (in liquidation)

Claimant

Vincent Barber

Claimant

Linda Lawless

Claimant

Stephen Katz (Acting as Liquidator of Brit Inns Ltd)

Claimant

BDW Trading Limited

Defendant

J Reddington Limited

Third Party/part 20 Defendant

Procedural Posture

Civil (commercial, Costs) / Post Trial, Costs Judgment

Legal Issues

  1. 1 Proper approach to costs where claimants recover less than claimed and defendant fails to beat Part 36 offer
  2. 2 Effect of exaggerated claims and conduct on costs
  3. 3 Impact of separate proceedings for insured and uninsured losses

Ratio Decidendi

Claimants in the main action are treated as the successful party up to 30 May 2012 but, due to exaggerated claims, poor conduct, and failure to provide proper information, are only entitled to 60% of their costs (excluding all expert-related costs and late supplementary statements). From 30 May 2012, following the defendant's Part 44 offer, claimants must pay the defendant's costs. In the uninsured action, claimants must pay 90% of the defendant's costs due to the unjustified separate action, minimal recovery, and the defendant's bettered offer.

Court Disposition

Costs apportioned; claimants recover part of their costs in main action, pay majority of costs in uninsured action.

Orders

  • In the main action, defendant to pay 60% of claimants’ costs down to 30 May 2012, excluding all costs incurred in connection with claimants’ experts and late supplementary statements, which are to be borne by claimants.
  • Defendant’s costs from 30 May 2012 (essentially all trial costs) to be borne by claimants.