Jones v Environcom Ltd & Anor [2009] EWHC 16 (Comm) (16 January 2009)

Jones v Environcom Ltd & Anor [2009] EWHC 16 (Comm) (16 January 2009)

The counterclaim in this case has independent vitality as it is a substantive claim for indemnity and damages, not merely a defence; it is just to order security for the costs of the counterclaim, including costs common to both claim and counterclaim, as either party could have been claimant and the substance of the dispute is the defendants' claim for indemnity.

Citation
[2009] EWHC 16 (Comm)
Parties
Claimant: Nicholas G Jones (on his own behalf and on behalf of all underwriting members of the Lloyd's Syndicates referred to in Schedule 1 hereto subscribing to Policy No. WBCUL/07 70695 and on behalf of all underwriting members of the Lloyd's Syndicate 1200 subscribing to Policy No. WBCUL/07 70695 and Policy No. WBHER/05 70108); Defendant: Environcom Limited; Defendant: Environcom England Limited
Jurisdiction
England and Wales
Judgment Date
16 January 2009
Procedural Posture
Commercial Insurance Dispute / Preliminary Issues Determination on Application for Security for Costs of Counterclaim
Outcome
Preliminary issues determined in favour of the claimant insurers; security for costs may be ordered for the full amount of the counterclaim costs.
Legal Topics
Security for Costs, Counterclaims, Non Disclosure in Insurance, Costs Allocation
Civil Procedure Insurance Law Security for Costs Counterclaims Non Disclosure in Insurance Costs Allocation

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Parties

Nicholas G Jones (on his own behalf and on behalf of all underwriting members of the Lloyd's Syndicates referred to in Schedule 1 hereto subscribing to Policy No. WBCUL/07 70695 and on behalf of all underwriting members of the Lloyd's Syndicate 1200 subscribing to Policy No. WBCUL/07 70695 and Policy No. WBHER/05 70108)

Claimant

Environcom Limited

Defendant

Environcom England Limited

Defendant

Procedural Posture

Commercial Insurance Dispute / Preliminary Issues Determination on Application for Security for Costs of Counterclaim

Legal Issues

  1. 1 Whether the defendants' counterclaim has independent vitality justifying an order for security for costs
  2. 2 Whether security for costs should cover only costs exclusively referable to the counterclaim or also common costs

Ratio Decidendi

The counterclaim in this case has independent vitality as it is a substantive claim for indemnity and damages, not merely a defence; it is just to order security for the costs of the counterclaim, including costs common to both claim and counterclaim, as either party could have been claimant and the substance of the dispute is the defendants' claim for indemnity.

Court Disposition

Preliminary issues determined in favour of the claimant insurers; security for costs may be ordered for the full amount of the counterclaim costs.

Orders

  • Court will hear argument as to costs and consequential orders after formal hand down of judgment.