Motto & Ors v Trafigura Ltd & Anor

Motto & Ors v Trafigura Ltd & Anor

The court holds that the incipitur rule remains binding, so interest on costs is payable from the date of the interim or final costs certificate, not from the date of the compromise agreement. Any interest payable belongs to the claimants, not their legal representatives. No term is to be implied into the CFAs entitling solicitors to interest. The court has jurisdiction under CPR 40.8 and 44.3 to determine the date from which interest runs.

Parties
Claimant: Yao Essaie Motto & Others; Defendant: Trafigura Ltd; Defendant: Trafigura Beheer BV
Jurisdiction
England and Wales
Judgment Date
29 June 2011
Procedural Posture
Costs Application / Ruling on Application for Interest on Costs
Outcome
Application dismissed in part; interest on costs to run from date of interim or final costs certificate, not from date of compromise agreement; interest belongs to claimants, not legal representatives.
Legal Topics
Interest on Costs, Conditional Fee Agreements (cfas), Implied Terms, Subrogation, Judgments Act 1838, Civil Procedure Rules
Civil Procedure Costs Interest on Costs Conditional Fee Agreements (cfas) Implied Terms Subrogation Judgments Act 1838 Civil Procedure Rules

Case Brief

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Parties

Yao Essaie Motto & Others

Claimant

Trafigura Ltd

Defendant

Trafigura Beheer BV

Defendant

Procedural Posture

Costs Application / Ruling on Application for Interest on Costs

Legal Issues

  1. 1 Whether interest is recoverable on costs incurred under CFAs and from what date such interest should run; whether interest should be paid to claimants or their legal representatives; whether terms should be implied into CFAs regarding entitlement to interest; whether the incipitur rule or allocatur rule applies post-CPR amendments.

Ratio Decidendi

The court holds that the incipitur rule remains binding, so interest on costs is payable from the date of the interim or final costs certificate, not from the date of the compromise agreement. Any interest payable belongs to the claimants, not their legal representatives. No term is to be implied into the CFAs entitling solicitors to interest. The court has jurisdiction under CPR 40.8 and 44.3 to determine the date from which interest runs.

Court Disposition

Application dismissed in part; interest on costs to run from date of interim or final costs certificate, not from date of compromise agreement; interest belongs to claimants, not legal representatives.

Orders

  • Interest at the judgment rate shall run from the date when an interim or final costs certificate is issued by the court.
  • No implied term entitling solicitors to interest on costs is to be read into the CFAs.