Tonstate Group Ltd & Ors v Wojakovski & Ors (Costs) [2021] EWHC 1995 (Ch) (15 July 2021)

Tonstate Group Ltd & Ors v Wojakovski & Ors (Costs) [2021] EWHC 1995 (Ch) (15 July 2021)

Claimants lost on the substantive issue of breach of the freezing order; no deliberate concealment or regulatory failings by solicitors were established. The application was pursued unreasonably to make solicitors liable for costs unrecoverable from Mr Wojakovski. Costs follow the event, and the conduct justified indemnity basis assessment.

Citation
[2021] EWHC 1995 (Ch)
Parties
Claimant: Tonstate Group Limited; Claimant: Tonstate Edinburgh Limited; Claimant: Dan-Ton Investments Limited; Claimant: Arthur Matyas; Defendant: Edward Wojakovski; Additional Defendant: Raydens Limited (trading as Rayden Solicitors); Additional Defendant: Keidan Harrison LLP
Jurisdiction
England and Wales
Judgment Date
15 July 2021
Procedural Posture
Costs Application Following Disclosure Proceedings / Post Judgment, Costs Determination
Outcome
Claimants ordered to pay Raydens Limited and Keidan Harrison LLP their costs of the disclosure application, assessed on the indemnity basis.
Legal Topics
Freezing Orders, Disclosure, Indemnity Costs, Solicitor Conduct, Anti Money Laundering, Section 37 Senior Courts Act 1981
Civil Procedure Injunctions Costs Freezing Orders Disclosure Indemnity Costs Solicitor Conduct Anti Money Laundering +1 more

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Parties

Tonstate Group Limited

Claimant

Tonstate Edinburgh Limited

Claimant

Dan-Ton Investments Limited

Claimant

Arthur Matyas

Claimant

Edward Wojakovski

Defendant

Raydens Limited (trading as Rayden Solicitors)

Additional Defendant

Keidan Harrison LLP

Additional Defendant

Procedural Posture

Costs Application Following Disclosure Proceedings / Post Judgment, Costs Determination

Legal Issues

  1. 1 Whether Raydens Limited and Keidan Harrison LLP should be liable for the claimants' costs of the disclosure application
  2. 2 Whether alleged misconduct or regulatory failings by solicitors justify a departure from the usual costs rule
  3. 3 Whether costs should be assessed on the indemnity basis

Ratio Decidendi

Claimants lost on the substantive issue of breach of the freezing order; no deliberate concealment or regulatory failings by solicitors were established. The application was pursued unreasonably to make solicitors liable for costs unrecoverable from Mr Wojakovski. Costs follow the event, and the conduct justified indemnity basis assessment.

Court Disposition

Claimants ordered to pay Raydens Limited and Keidan Harrison LLP their costs of the disclosure application, assessed on the indemnity basis.

Orders

  • Raydens Limited's costs summarily assessed at £30,372.50, payable by claimants.
  • Keidan Harrison LLP's costs summarily assessed at £35,438.50, payable by claimants.