Home Office v Lownds [2002] EWCA Civ 365 (21st March, 2002)

Home Office v Lownds [2002] EWCA Civ 365 (21st March, 2002)

Where costs are assessed on the standard basis under the CPR, the court must first consider whether the total costs are proportionate to the matters in issue (global approach). If the costs are disproportionate, only those costs which were necessary for the litigation, and reasonable in amount, are recoverable. The...

Source-derived case information.

Citation
[2002] EWCA Civ 365
Parties
Appellant: Home Office; Respondent: Lownds
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From Detailed Assessment of Costs
Outcome
Appeal dismissed
Legal Topics
Proportionality of Costs, Assessment of Costs, Civil Procedure Rules, Standard and Indemnity Basis, Transitional Provisions
Civil Procedure Costs Proportionality of Costs Assessment of Costs Civil Procedure Rules Standard and Indemnity Basis Transitional Provisions

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Summary, issues, holding and outcome

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Parties

Home Office

Appellant

Lownds

Respondent

Procedural Posture

Civil Appeal / Appeal From Detailed Assessment of Costs

Legal Issues

  1. 1 Whether costs awarded to a successful litigant may or should be reduced if disproportionate to the amount claimed or recovered
  2. 2 How proportionality and reasonableness interact in the assessment of costs under the CPR
  3. 3 Whether proportionality should be applied globally, item by item, or both

Ratio Decidendi

Where costs are assessed on the standard basis under the CPR, the court must first consider whether the total costs are proportionate to the matters in issue (global approach). If the costs are disproportionate, only those costs which were necessary for the litigation, and reasonable in amount, are recoverable. The necessity threshold is higher than reasonableness. For transitional cases, pre-CPR costs are assessed under the old rules, but post-CPR costs are subject to the proportionality requirement. The appeal was dismissed because the District Judge correctly applied the transitional provisions and the pre-CPR approach to pre-26 April 1999 costs.

Court Disposition

Appeal dismissed

Orders

  • Order made in terms agreed between counsel