Cathay Pacific Airlines Ltd v Lufthansa Technik AG [2019] EWHC 715 (Ch) (25 March 2019)

Cathay Pacific Airlines Ltd v Lufthansa Technik AG [2019] EWHC 715 (Ch) (25 March 2019)

The court has jurisdiction to make a costs award in a foreign currency where that currency most accurately reflects the loss incurred, and there is no implied restriction requiring costs awards to be made only in sterling. The appropriate currency for LHT's costs is the euro, as both the currency of account and...

Source-derived case information.

Citation
[2019] EWHC 715 (Ch)
Parties
Claimant: Cathay Pacific Airlines Limited; Defendant: Lufthansa Technik AG
Jurisdiction
England and Wales
Judgment Date
25 March 2019
Procedural Posture
Commercial Dispute / Post Case Management and Costs Determination
Outcome
Costs awarded to Defendant in euros, with division of costs between procedural and substantive issues.
Legal Topics
Foreign Currency Costs Awards, Case Management Directions, Indemnity Principle
Civil Procedure Costs Foreign Currency Costs Awards Case Management Directions Indemnity Principle

Source-derived case record

Summary, issues, holding and outcome

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Parties

Cathay Pacific Airlines Limited

Claimant

Lufthansa Technik AG

Defendant

Procedural Posture

Commercial Dispute / Post Case Management and Costs Determination

Legal Issues

  1. 1 Whether the court has jurisdiction to award costs in a foreign currency
  2. 2 Appropriate division of costs between procedural and substantive issues
  3. 3 Requirement for parties to identify facts to be proved by witness evidence

Ratio Decidendi

The court has jurisdiction to make a costs award in a foreign currency where that currency most accurately reflects the loss incurred, and there is no implied restriction requiring costs awards to be made only in sterling. The appropriate currency for LHT's costs is the euro, as both the currency of account and payment. LHT is awarded €25,000, summarily assessed, with remaining costs in the case.

Court Disposition

Costs awarded to Defendant in euros, with division of costs between procedural and substantive issues.

Orders

  • Cathay Pacific Airlines Limited to pay Lufthansa Technik AG €25,000 as summarily assessed costs.
  • Remaining one third of LHT's costs and half of Cathay's costs are costs in the case.