Uddin & Anor v Hussain & Anor [2023] EWCA Civ 1127 (19 July 2023)

Uddin & Anor v Hussain & Anor [2023] EWCA Civ 1127 (19 July 2023)

The judge erred in law by failing to apply the established principle that costs of interim injunctions to 'hold the ring' should be reserved absent special factors, and by not ensuring procedural fairness in notice and assessment of costs. No special factors justified departure from the usual order. The costs order is set aside and replaced with an order reserving costs.

Citation
[2023] EWCA Civ 1127
Parties
Applicant: Uddin and another; Respondent: Hussain and another
Jurisdiction
England and Wales
Judgment Date
19 July 2023
Procedural Posture
Appeal (civil) / Appeal Against Summary Costs Order on Interim Relief Application
Outcome
Appeal allowed; costs order quashed; costs of the application reserved.
Legal Topics
Interim Injunctions, Costs Orders, Summary Assessment of Costs, Rectification of Register
Civil Procedure Property Law Interim Injunctions Costs Orders Summary Assessment of Costs Rectification of Register

Case Brief

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Parties

Uddin and another

Applicant

Hussain and another

Respondent

Procedural Posture

Appeal (civil) / Appeal Against Summary Costs Order on Interim Relief Application

Legal Issues

  1. 1 Whether the judge erred in law in awarding summary assessed costs to the claimants on an interim injunction application intended to 'hold the ring' pending trial
  2. 2 Whether there were special factors justifying departure from the usual order to reserve costs in such applications
  3. 3 Whether procedural fairness was observed in notifying and assessing costs

Ratio Decidendi

The judge erred in law by failing to apply the established principle that costs of interim injunctions to 'hold the ring' should be reserved absent special factors, and by not ensuring procedural fairness in notice and assessment of costs. No special factors justified departure from the usual order. The costs order is set aside and replaced with an order reserving costs.

Court Disposition

Appeal allowed; costs order quashed; costs of the application reserved.

Orders

  • Order for defendants to pay claimants' costs summarily assessed in the sum of £44,784.30 quashed.
  • Substituted order: costs of the application for interim relief reserved pending resolution of the claim or further order.