Crowther v Crowther & Ors

Crowther v Crowther & Ors

Mrs Crowther must pay Mr Crowther's costs of and occasioned by the preliminary issues on an indemnity basis because she discontinued serious allegations of fraud and conspiracy just before trial, depriving Mr Crowther of vindication and causing reputational harm. The principles governing costs on discontinuance and the seriousness of fraud allegations apply equally in the Family Division. Litigation conduct and disclosure relevance do not justify departure from the presumption that costs follow discontinuance.

Parties
Applicant: Caroline Jill Crowther; First Respondent: Paul Anthony Crowther; Second Respondent: Steven Andrew Knight; Third Respondent: Carasol Group Limited; Fourth Respondent: Castle Trust and Management Services Limited; Fifth Respondent: Castle Nominees Limited; Sixth Respondent: Castle Ship Management Limited; Seventh Respondent: Maritime Atlantic Limited
Jurisdiction
England and Wales
Judgment Date
22 December 2020
Procedural Posture
Financial Remedy and Preliminary Issue Proceedings / Costs Determination Following Discontinuance of Preliminary Issue
Outcome
Costs order in favour of Mr Crowther on an indemnity basis; payment on account ordered.
Legal Topics
Costs, Discontinuance, Fraud Allegations, Beneficial Ownership, Disclosure
Family Law Civil Procedure Costs Discontinuance Fraud Allegations Beneficial Ownership Disclosure

Case Brief

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Parties

Caroline Jill Crowther

Applicant

Paul Anthony Crowther

First Respondent

Steven Andrew Knight

Second Respondent

Carasol Group Limited

Third Respondent

Castle Trust and Management Services Limited

Fourth Respondent

Castle Nominees Limited

Fifth Respondent

Castle Ship Management Limited

Sixth Respondent

Maritime Atlantic Limited

Seventh Respondent

Procedural Posture

Financial Remedy and Preliminary Issue Proceedings / Costs Determination Following Discontinuance of Preliminary Issue

Legal Issues

  1. 1 Whether Mrs Crowther should pay Mr Crowther's costs of the preliminary issue on an indemnity basis
  2. 2 Application of costs principles following discontinuance of fraud and conspiracy allegations
  3. 3 Relevance of litigation conduct to costs determination

Ratio Decidendi

Mrs Crowther must pay Mr Crowther's costs of and occasioned by the preliminary issues on an indemnity basis because she discontinued serious allegations of fraud and conspiracy just before trial, depriving Mr Crowther of vindication and causing reputational harm. The principles governing costs on discontinuance and the seriousness of fraud allegations apply equally in the Family Division. Litigation conduct and disclosure relevance do not justify departure from the presumption that costs follow discontinuance.

Court Disposition

Costs order in favour of Mr Crowther on an indemnity basis; payment on account ordered.

Orders

  • Mrs Crowther to pay Mr Crowther's costs of and occasioned by the preliminary issues on an indemnity basis.
  • Mrs Crowther to pay Mr Crowther £80,000 as a payment on account of costs.