Cathay Pacific Airlines Ltd v Lufthansa Technik AG

Cathay Pacific Airlines Ltd v Lufthansa Technik AG

The court has jurisdiction to award costs in a foreign currency where that currency most accurately reflects the receiving party's loss, and in this case, the appropriate award is in euros as both the currency of account and payment between LHT and its solicitors. The court also ordered the parties to identify in their pleadings the facts they intend to prove by witness evidence for case management purposes.

Parties
Claimant: Cathay Pacific Airlines Limited; Defendant: Lufthansa Technik AG
Jurisdiction
England and Wales
Judgment Date
25 March 2019
Procedural Posture
Civil (commercial) / Post Interlocutory Judgment on Consequential Matters (case Management, Costs, Currency of Costs Award)
Outcome
Application for costs in foreign currency granted; case management directions issued; costs apportioned between parties.
Legal Topics
Case Management Directions, Costs Awards, Foreign Currency Judgments, Summary Assessment of Costs
Civil Procedure Costs Case Management Directions Costs Awards Foreign Currency Judgments Summary Assessment of Costs

Case Brief

Summary, issues, holding and outcome

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Parties

Cathay Pacific Airlines Limited

Claimant

Lufthansa Technik AG

Defendant

Procedural Posture

Civil (commercial) / Post Interlocutory Judgment on Consequential Matters (case Management, Costs, Currency of Costs Award)

Legal Issues

  1. 1 Whether the court should order parties to identify in pleadings the facts to be proved by witness evidence
  2. 2 How costs should be apportioned between the parties following the interlocutory hearing
  3. 3 Whether the court has jurisdiction to make a costs order in a foreign currency and if so, whether it should be exercised

Ratio Decidendi

The court has jurisdiction to award costs in a foreign currency where that currency most accurately reflects the receiving party's loss, and in this case, the appropriate award is in euros as both the currency of account and payment between LHT and its solicitors. The court also ordered the parties to identify in their pleadings the facts they intend to prove by witness evidence for case management purposes.

Court Disposition

Application for costs in foreign currency granted; case management directions issued; costs apportioned between parties.

Orders

  • Parties to identify in pleadings the facts to be proved by witness evidence.
  • Lufthansa Technik awarded €25,000 (2/3 of its costs) summarily assessed, remainder costs in the case.