Lloyds Bank Plc v McBains Cooper

Lloyds Bank Plc v McBains Cooper

The Bank is the successful party and entitled to costs, but its recovery is reduced to reflect its lack of success on certain issues (recklessness, valuation evidence, contributory negligence) and the additional costs caused by its allegations of fraud. Withdrawn settlement offers are relevant but do not trigger automatic indemnity costs. Issues-based costs orders are not appropriate except for valuation evidence after trial. The Bank is awarded 80% of its costs up to 31 July 2015 (with specific deductions), and 100% thereafter (subject to further deductions for valuation evidence), all on the standard basis.

Parties
Claimant: Lloyds Bank PLC; Defendant: McBains Cooper
Jurisdiction
England and Wales
Judgment Date
18 January 2017
Procedural Posture
Civil / Judgment on Costs Following Liability and Damages Judgments
Outcome
Costs judgment: Bank awarded majority of its costs with specified deductions; payment on account ordered.
Legal Topics
Costs, Settlement Offers, Negligence, Contributory Negligence, Valuation Evidence, Adjudication, Fraud Allegations
Civil Procedure Professional Negligence Banking Law Costs Settlement Offers Negligence Contributory Negligence Valuation Evidence +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Lloyds Bank PLC

Claimant

McBains Cooper

Defendant

Procedural Posture

Civil / Judgment on Costs Following Liability and Damages Judgments

Legal Issues

  1. 1 Whether the successful party (the Bank) should recover its costs and on what basis
  2. 2 Whether issues-based costs orders are appropriate given the conduct and outcome
  3. 3 Effect of settlement offers, including withdrawn Part 36 offers, on costs

Ratio Decidendi

The Bank is the successful party and entitled to costs, but its recovery is reduced to reflect its lack of success on certain issues (recklessness, valuation evidence, contributory negligence) and the additional costs caused by its allegations of fraud. Withdrawn settlement offers are relevant but do not trigger automatic indemnity costs. Issues-based costs orders are not appropriate except for valuation evidence after trial. The Bank is awarded 80% of its costs up to 31 July 2015 (with specific deductions), and 100% thereafter (subject to further deductions for valuation evidence), all on the standard basis.

Court Disposition

Costs judgment: Bank awarded majority of its costs with specified deductions; payment on account ordered.

Orders

  • The Bank is to have 80% of its costs of the two actions up to 31 July 2015, after deducting £125,000 for additional leading counsel costs and a further £150,000 for McBains Cooper's leading counsel costs.
  • The Bank is not to recover and must itself bear any success fee payable to leading counsel.