McAteer v Devine & Ors [2016] NICA 46 (23 November 2016)

McAteer v Devine & Ors [2016] NICA 46 (23 November 2016)

The trial judge failed to exercise his discretion judicially in fixing the gross sum of £40,000 plus VAT for costs, as there was no evidential basis or analysis for the figure, which represented an arbitrary and excessive reduction from the estimated costs. The award was set aside and the matter remitted for taxation of costs with an appropriate percentage reduction to be indicated by the trial judge.

Citation
[2016] NICA 46
Parties
Plaintiff/respondent: Daniel McAteer; Defendant: Sean Devine; Defendant: Mary Devine; Defendant/appellant: Brendan Fox, Partner, Cleaver Fulton Rankin; Defendant: John Love, Partner, Moore Stephens Bradley McDaid; Defendant: Stephen McCarron
Jurisdiction
Northern Ireland
Judgment Date
23 November 2016
Procedural Posture
Appeal Against Costs Order / Court of Appeal Judgment
Outcome
Appeal allowed; costs award of £40,000 plus VAT set aside; costs to be taxed by the Master with percentage reduction to be indicated by the trial judge.
Legal Topics
Costs Orders, Taxation of Costs, Judicial Discretion in Costs, Order 62 Rule 7 of the Rules of the Court of Judicature (ni) 1980
Civil Procedure Costs Costs Orders Taxation of Costs Judicial Discretion in Costs Order 62 Rule 7 of the Rules of the Court of Judicature (ni) 1980

Case Brief

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Parties

Daniel McAteer

Plaintiff/respondent

Sean Devine

Defendant

Mary Devine

Defendant

Brendan Fox, Partner, Cleaver Fulton Rankin

Defendant/appellant

John Love, Partner, Moore Stephens Bradley McDaid

Defendant

Stephen McCarron

Defendant

Procedural Posture

Appeal Against Costs Order / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the trial judge erred in awarding a fixed gross sum of £40,000 plus VAT in costs under Order 62 rule 7(4) instead of taxed costs
  2. 2 Whether the discretion to award a gross sum was exercised judicially and on proper material

Ratio Decidendi

The trial judge failed to exercise his discretion judicially in fixing the gross sum of £40,000 plus VAT for costs, as there was no evidential basis or analysis for the figure, which represented an arbitrary and excessive reduction from the estimated costs. The award was set aside and the matter remitted for taxation of costs with an appropriate percentage reduction to be indicated by the trial judge.

Court Disposition

Appeal allowed; costs award of £40,000 plus VAT set aside; costs to be taxed by the Master with percentage reduction to be indicated by the trial judge.

Orders

  • Set aside the award of £40,000 plus VAT as costs.
  • Order that costs be taxed by the Master in default of agreement.