Greenwood & Ors v Goodwin & Ors

Greenwood & Ors v Goodwin & Ors

Costs liability for both adverse and claimants’ common costs shall be several and proportionate to each claimant’s acquisition cost of shares, not group-based. All claimants, present and future, are subject to the same regime. 'Pay as You Go' funding is preferred but deferred until group shapes are clearer. The GLO cut-off date is set aside. Defendants are required to plead to causation and quantum within six weeks. Cost budgeting is premature and dismissed for now. Non-parties may participate only if they issue proceedings or applications in the name of identified clients.

Parties
Claimant: Mr John Greenwood and others; Claimant: Trustees of the Mineworkers’ Pension Scheme Limited and others; Interested Person: LK Group (shareholder group of 8,200 members); Interested Person: QE Group (small group of large investors); Defendant: Mr Frederick Goodwin; Defendant: Sir Thomas McKillop; Defendant: John Cameron; Defendant: Guy Whittaker; Defendant: The Royal Bank of Scotland Group PLC
Jurisdiction
England and Wales
Judgment Date
12 February 2014
Procedural Posture
Group Litigation Order (glo) / Third Case Management Conference (cmc), Interlocutory Judgment on Costs Sharing and Procedural Directions
Outcome
Interlocutory judgment with procedural and costs directions; no final determination of substantive claims.
Legal Topics
Group Litigation Order, Costs Sharing, Adverse Costs Allocation, Case Management, Rights Issue, Misleading Prospectus, Statutory Remedies, Limitation Periods
Civil Procedure Financial Services Law Group Litigation Order Costs Sharing Adverse Costs Allocation Case Management Rights Issue Misleading Prospectus +2 more

Case Brief

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Parties

Mr John Greenwood and others

Claimant

Trustees of the Mineworkers’ Pension Scheme Limited and others

Claimant

LK Group (shareholder group of 8,200 members)

Interested Person

QE Group (small group of large investors)

Interested Person

Mr Frederick Goodwin

Defendant

Sir Thomas McKillop

Defendant

John Cameron

Defendant

Guy Whittaker

Defendant

The Royal Bank of Scotland Group PLC

Defendant

Procedural Posture

Group Litigation Order (glo) / Third Case Management Conference (cmc), Interlocutory Judgment on Costs Sharing and Procedural Directions

Legal Issues

  1. 1 How should costs (adverse and claimants’ common costs) be shared among claimants in a GLO with disparate claim values?
  2. 2 Should future claimants or non-party groups be allowed to participate or avoid costs liability?
  3. 3 Should cost budgeting be ordered at this stage?

Ratio Decidendi

Costs liability for both adverse and claimants’ common costs shall be several and proportionate to each claimant’s acquisition cost of shares, not group-based. All claimants, present and future, are subject to the same regime. 'Pay as You Go' funding is preferred but deferred until group shapes are clearer. The GLO cut-off date is set aside. Defendants are required to plead to causation and quantum within six weeks. Cost budgeting is premature and dismissed for now. Non-parties may participate only if they issue proceedings or applications in the name of identified clients.

Court Disposition

Interlocutory judgment with procedural and costs directions; no final determination of substantive claims.

Orders

  • Costs liability for adverse and claimants’ common costs to be several and proportionate to acquisition cost.
  • 'Pay as You Go' funding deferred until group shapes and collection process clarified.