Forcelux Ltd v Binnie

Forcelux Ltd v Binnie

The court exercised its discretion to depart from the contractual costs provision in the lease, holding that Mr Binnie, as the substantial winner, was entitled to a costs order in his favour. The contractual point was not raised at the appropriate stage, and applying the general rule would cause injustice. Costs orders made by the lower courts were not disturbed.

Parties
Appellant: Forcelux Limited; Respondent: Mr Martyn Ewan Binnie
Jurisdiction
England and Wales
Judgment Date
21 October 2009
Procedural Posture
Civil Appeal / Costs Determination After Appeal Judgment
Outcome
Costs order in favour of Mr Binnie; contractual costs provision not followed; lower court costs orders undisturbed; payment on account of costs ordered; stay continued pending possible Supreme Court petition.
Legal Topics
Costs, Relief From Forfeiture, Contractual Costs Provisions, Appeals
Landlord and Tenant Civil Procedure Costs Relief From Forfeiture Contractual Costs Provisions Appeals

Case Brief

Summary, issues, holding and outcome

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Parties

Forcelux Limited

Appellant

Mr Martyn Ewan Binnie

Respondent

Procedural Posture

Civil Appeal / Costs Determination After Appeal Judgment

Legal Issues

  1. 1 Whether the contractual costs provision in the lease entitles Forcelux to costs of the appeal and proceedings below
  2. 2 Whether the court should exercise its discretion to depart from the contractual costs provision
  3. 3 Whether costs orders made by lower courts should be disturbed

Ratio Decidendi

The court exercised its discretion to depart from the contractual costs provision in the lease, holding that Mr Binnie, as the substantial winner, was entitled to a costs order in his favour. The contractual point was not raised at the appropriate stage, and applying the general rule would cause injustice. Costs orders made by the lower courts were not disturbed.

Court Disposition

Costs order in favour of Mr Binnie; contractual costs provision not followed; lower court costs orders undisturbed; payment on account of costs ordered; stay continued pending possible Supreme Court petition.

Orders

  • Forcelux to pay Mr Binnie's costs of the appeal, except for costs of the Respondent’s notice and preparation of Mr Stenson’s witness statement.
  • No indemnity costs awarded.