Von Westenholz & Ors v Gregson & Anor [2022] EWHC 3374 (Ch) (23 December 2022)

Von Westenholz & Ors v Gregson & Anor [2022] EWHC 3374 (Ch) (23 December 2022)

The Defendants' conduct did not justify indemnity costs prior to the relevant Part 36 offer; costs are awarded on the standard basis up to 18 August 2020, reduced by 25% for unsuccessful claims. After the valid Part 36 offer, Claimants are entitled to indemnity costs, interest at 4% above base rate, and a 10% additional sum. Interest on compensation and costs is simple interest at 2.5% above base rate before 18 August 2020, then 4% above base rate until judgment, then judgment rate. Payment on account is set at 65% of Claimants' budgeted costs less £12,859.99. Stay of order is granted only for sums other than the payment on account, until 1 April 2023.

Citation
[2022] EWHC 3374 (Ch)
Parties
Claimant: Ms Melissa von Westenholz (Personal Representative of the Estate of Mr Michael Sanders, Deceased); Claimant: Mrs Thalia Sanders; Claimant: Mr Rupert Sanders; Claimant: Ms Melissa von Westenholz; Defendant: Mr Marcus Gregson; Defendant: Mr Daniel Evans
Jurisdiction
England and Wales
Judgment Date
23 December 2022
Procedural Posture
Civil / Post Trial, Supplemental Judgment on Consequential Matters
Outcome
Claimants awarded equitable compensation, costs (partly reduced), interest, and additional sum; partial stay granted.
Legal Topics
Equitable Compensation, Fiduciary Duties, Costs, Interest, Part 36 Offers
Equity Trusts Civil Procedure Equitable Compensation Fiduciary Duties Costs Interest Part 36 Offers

Case Brief

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Parties

Ms Melissa von Westenholz (Personal Representative of the Estate of Mr Michael Sanders, Deceased)

Claimant

Mrs Thalia Sanders

Claimant

Mr Rupert Sanders

Claimant

Ms Melissa von Westenholz

Claimant

Mr Marcus Gregson

Defendant

Mr Daniel Evans

Defendant

Procedural Posture

Civil / Post Trial, Supplemental Judgment on Consequential Matters

Legal Issues

  1. 1 Whether costs should be awarded on the indemnity or standard basis
  2. 2 Whether a reduction in costs is appropriate due to unsuccessful claims
  3. 3 Appropriate rate and type of interest on equitable compensation and costs

Ratio Decidendi

The Defendants' conduct did not justify indemnity costs prior to the relevant Part 36 offer; costs are awarded on the standard basis up to 18 August 2020, reduced by 25% for unsuccessful claims. After the valid Part 36 offer, Claimants are entitled to indemnity costs, interest at 4% above base rate, and a 10% additional sum. Interest on compensation and costs is simple interest at 2.5% above base rate before 18 August 2020, then 4% above base rate until judgment, then judgment rate. Payment on account is set at 65% of Claimants' budgeted costs less £12,859.99. Stay of order is granted only for sums other than the payment on account, until 1 April 2023.

Court Disposition

Claimants awarded equitable compensation, costs (partly reduced), interest, and additional sum; partial stay granted.

Orders

  • Defendants to pay Claimants £400,000 equitable compensation plus simple interest at 2.5% above base rate from 25 May 2018 to 18 August 2020, then 4% above base rate to 21 November 2022, then judgment rate.
  • Claimants to recover 75% of their costs up to 18 August 2020 on standard basis, and all costs thereafter on indemnity basis.