Farrell & Anor v Direct Accident Management Services Ltd & Anor

Farrell & Anor v Direct Accident Management Services Ltd & Anor

DAMS was the instigator, controlled and managed the litigation, and had a direct commercial interest in the claim. The judge's exercise of discretion in awarding 80% of the costs was justified and within the permissible range. Lack of early notice was not material in the circumstances.

Parties
Appellant: Farrell & Anr; Respondent: Direct Accident Management Services Ltd & Anr
Jurisdiction
England and Wales
Judgment Date
17 June 2009
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Third Party Costs Orders, Litigation Funding, Discretion in Costs Awards
Civil Procedure Costs Third Party Costs Orders Litigation Funding Discretion in Costs Awards

Case Brief

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Parties

Farrell & Anr

Appellant

Direct Accident Management Services Ltd & Anr

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the judge properly exercised discretion in making a third-party costs order against DAMS
  2. 2 Whether DAMS had sufficient control, funding, and commercial interest to justify the order
  3. 3 Whether lack of early notice to DAMS was material

Ratio Decidendi

DAMS was the instigator, controlled and managed the litigation, and had a direct commercial interest in the claim. The judge's exercise of discretion in awarding 80% of the costs was justified and within the permissible range. Lack of early notice was not material in the circumstances.

Court Disposition

appeal dismissed

Orders

  • DAMS to pay 80% of Birmingham City Council's costs of defending the claim