Business Environment Bow Lane Ltd v Deanwater Estates Ltd (Rev 1)

Business Environment Bow Lane Ltd v Deanwater Estates Ltd (Rev 1)

The costs judge erred by disallowing all costs of the preliminary issue based on the ultimate failure of the action and findings of exaggeration. The assessment should have been confined to the reasonableness and propriety of costs within the preliminary issue, as required by the self-contained order of the Court of Appeal. The subsequent outcome of the action and findings of exaggeration were not grounds to revisit or nullify the prior costs order.

Parties
Claimant: Business Environment Bow Lane Limited; Defendant: Deanwater Estates Limited
Jurisdiction
England and Wales
Judgment Date
31 July 2009
Procedural Posture
Civil Appeal / Appeal From Costs Assessment
Outcome
Appeal allowed
Legal Topics
Assessment of Costs, Interim Costs Orders, Effect of Exaggerated Claims, Conduct of Parties in Costs Assessment
Civil Procedure Costs Assessment of Costs Interim Costs Orders Effect of Exaggerated Claims Conduct of Parties in Costs Assessment

Case Brief

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Parties

Business Environment Bow Lane Limited

Claimant

Deanwater Estates Limited

Defendant

Procedural Posture

Civil Appeal / Appeal From Costs Assessment

Legal Issues

  1. 1 Whether a costs judge can assess at nil the costs awarded by a prior court order due to subsequent findings that the claim was exaggerated and should not have been brought.
  2. 2 Whether the assessment of costs for a preliminary issue should be affected by the ultimate outcome of the action.

Ratio Decidendi

The costs judge erred by disallowing all costs of the preliminary issue based on the ultimate failure of the action and findings of exaggeration. The assessment should have been confined to the reasonableness and propriety of costs within the preliminary issue, as required by the self-contained order of the Court of Appeal. The subsequent outcome of the action and findings of exaggeration were not grounds to revisit or nullify the prior costs order.

Court Disposition

Appeal allowed

Orders

  • Master's determination set aside
  • Matter referred back to the Master for assessment on the correct basis