Motto & Ors v Trafigura Ltd & Anor (Rev 3) [2011] EWCA Civ 1150 (12 October 2011)

Motto & Ors v Trafigura Ltd & Anor (Rev 3) [2011] EWCA Civ 1150 (12 October 2011)

Where a costs bill appears disproportionate, the necessity test must be applied to each item; only necessary and reasonable costs are recoverable. The Senior Costs Judge erred in not applying this test. Vetting and registration costs are recoverable if necessary and covered by the CFA. Pre-Action Protocol non-compliance did not increase costs in this case. Costs for medical reports and abandoned claims are recoverable if necessary, reasonable, and proportionate.

Citation
[2011] EWCA Civ 1150
Parties
Claimants: Yao Essaie Motto & Others; Defendant: Trafigura Limited; Defendant: Trafigura Beheer BV
Jurisdiction
England and Wales
Judgment Date
12 October 2011
Procedural Posture
Appeal (costs Assessment) / Court of Appeal Judgment on Preliminary Issues in Detailed Costs Assessment
Outcome
Defendants' appeal allowed in part; necessity test to be applied to each item in detailed assessment; other appeals dismissed.
Legal Topics
Group Litigation, Costs Assessment, Proportionality, Conditional Fee Agreements, After the Event Insurance, Personal Injury
Civil Procedure Costs Group Litigation Costs Assessment Proportionality Conditional Fee Agreements After the Event Insurance Personal Injury

Case Brief

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Parties

Yao Essaie Motto & Others

Claimants

Trafigura Limited

Defendant

Trafigura Beheer BV

Defendant

Procedural Posture

Appeal (costs Assessment) / Court of Appeal Judgment on Preliminary Issues in Detailed Costs Assessment

Legal Issues

  1. 1 Whether the necessity test applies to each item in a disproportionate costs bill
  2. 2 Entitlement to recover vetting and registration costs
  3. 3 Effect of non-compliance with Pre-Action Protocols

Ratio Decidendi

Where a costs bill appears disproportionate, the necessity test must be applied to each item; only necessary and reasonable costs are recoverable. The Senior Costs Judge erred in not applying this test. Vetting and registration costs are recoverable if necessary and covered by the CFA. Pre-Action Protocol non-compliance did not increase costs in this case. Costs for medical reports and abandoned claims are recoverable if necessary, reasonable, and proportionate.

Court Disposition

Defendants' appeal allowed in part; necessity test to be applied to each item in detailed assessment; other appeals dismissed.

Orders

  • Detailed assessment to proceed on basis that each item must satisfy necessity test if costs are disproportionate.
  • Other preliminary issues remitted to costs judge for assessment in accordance with this judgment.