Colour Quest Ltd & Ors v Total Downstream UK Plc & Ors (Rev 1)

Colour Quest Ltd & Ors v Total Downstream UK Plc & Ors (Rev 1)

Indemnity costs were awarded to the claimants on the issue of negligence up to 23 May 2008 due to Total's unreasonable denial of fault despite internal knowledge. Indemnity costs were not justified on the issue of foreseeability or in favour of Chevron. BP was entitled to indemnity costs from 28 June 2008 following a Part 36 offer. Shell was entitled to costs for its lost fuel claim, and WLPS/UKOP was entitled to recover its costs in full. Judgment Act interest on costs was postponed to start six months from the judgment date due to the exceptional size and complexity of the case. Assessment of Chevron's costs was not postponed pending appeal.

Parties
Claimants: Colour Quest Limited and Others; Claimants: Douglas Jessop Claimants; Claimants: West London Pipeline and Storage Ltd and United Kingdom Oil Pipelines Ltd; Claimant: BP Oil UK Limited; Claimant: Shell UK Limited; Defendant: Total Downstream UK PLC; Defendant: Total UK Limited; Defendant: Hertfordshire Oil Storage Limited; Defendant: Chevron Limited; Defendant: Total Milford Haven Refinery Limited
Jurisdiction
England and Wales
Judgment Date
22 April 2009
Procedural Posture
Civil Commercial / Post Judgment Costs Determination
Outcome
Indemnity costs partly allowed; standard costs otherwise; interest on costs postponed; assessment not postponed pending appeal.
Legal Topics
Indemnity Costs, Standard Costs, Interest on Costs, Part 36 Offers, Vicarious Liability, Negligence
Civil Procedure Costs Indemnity Costs Standard Costs Interest on Costs Part 36 Offers Vicarious Liability Negligence

Case Brief

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Parties

Colour Quest Limited and Others

Claimants

Douglas Jessop Claimants

Claimants

West London Pipeline and Storage Ltd and United Kingdom Oil Pipelines Ltd

Claimants

BP Oil UK Limited

Claimant

Shell UK Limited

Claimant

Total Downstream UK PLC

Defendant

Total UK Limited

Defendant

Hertfordshire Oil Storage Limited

Defendant

Chevron Limited

Defendant

Total Milford Haven Refinery Limited

Defendant

Procedural Posture

Civil Commercial / Post Judgment Costs Determination

Legal Issues

  1. 1 Whether indemnity costs should be awarded against Total and in favour of various claimants and Chevron
  2. 2 Whether BP is entitled to indemnity costs following a Part 36 offer and from what date
  3. 3 Appropriate rate and commencement date for interest on costs

Ratio Decidendi

Indemnity costs were awarded to the claimants on the issue of negligence up to 23 May 2008 due to Total's unreasonable denial of fault despite internal knowledge. Indemnity costs were not justified on the issue of foreseeability or in favour of Chevron. BP was entitled to indemnity costs from 28 June 2008 following a Part 36 offer. Shell was entitled to costs for its lost fuel claim, and WLPS/UKOP was entitled to recover its costs in full. Judgment Act interest on costs was postponed to start six months from the judgment date due to the exceptional size and complexity of the case. Assessment of Chevron's costs was not postponed pending appeal.

Court Disposition

Indemnity costs partly allowed; standard costs otherwise; interest on costs postponed; assessment not postponed pending appeal.

Orders

  • Claimants recover indemnity costs on negligence up to 23 May 2008.
  • Standard costs apply on foreseeability and other issues.