AC Network Holding Ltd & Ors v Polymath Ekar SPV1 & Ors [2023] ADGMCFI 0008 (07 April 2023)

AC Network Holding Ltd & Ors v Polymath Ekar SPV1 & Ors [2023] ADGMCFI 0008 (07 April 2023)

The Claimants are the successful party as they established liability and obtained a monetary judgment, even though the sum awarded was much less than claimed. There is no good reason to depart from the general rule that costs follow the event, except that the Claimants' unreasonable refusal to mediate justifies limiting their costs recovery to 70% from 1 May 2022 onwards. The Defendants' non-compliant settlement offer does not entitle them to costs protection. Costs of interlocutory applications are determined as set out in the judgment.

Citation
[2023] ADGMCFI 0008
Parties
Claimant: AC Network Holding Limited; Claimant: AC Pool Holding Limited; Claimant: Khalil Mohamed Binladin; Claimant: Dalia Khalil Binladin; Claimant: Horizon Light Investments LLC; Defendant: Polymath Ekar SPV1; Defendant: Polymath Ekar SPV2; Defendant: Vilhelm Nikolai Paus Hedberg; Defendant: Ravi Nagesh Bhusari; Defendant: Ali Hashemi; Defendant: Lux 2 Invco; Defendant: Clara Formations Limited; Defendant: Ekar Holding Limited
Jurisdiction
United Arab Emirates
Judgment Date
07 April 2023
Procedural Posture
Commercial and Civil / Post Trial Costs Judgment
Outcome
Claimants awarded costs, subject to reduction and detailed assessment; Defendants' application for costs dismissed.
Legal Topics
Costs Assessment, Shareholder Dispute, Settlement Offers, Alternative Dispute Resolution, Detailed Assessment, Part 18 Offers
Civil Procedure Commercial Law Costs Assessment Shareholder Dispute Settlement Offers Alternative Dispute Resolution Detailed Assessment Part 18 Offers

Case Brief

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Parties

AC Network Holding Limited

Claimant

AC Pool Holding Limited

Claimant

Khalil Mohamed Binladin

Claimant

Dalia Khalil Binladin

Claimant

Horizon Light Investments LLC

Claimant

Polymath Ekar SPV1

Defendant

Polymath Ekar SPV2

Defendant

Vilhelm Nikolai Paus Hedberg

Defendant

Ravi Nagesh Bhusari

Defendant

Ali Hashemi

Defendant

Lux 2 Invco

Defendant

Clara Formations Limited

Defendant

Ekar Holding Limited

Defendant

Procedural Posture

Commercial and Civil / Post Trial Costs Judgment

Legal Issues

  1. 1 Who is the successful party for costs purposes?
  2. 2 Should costs follow the event or be apportioned?
  3. 3 Effect of non-compliance with Part 18 offers

Ratio Decidendi

The Claimants are the successful party as they established liability and obtained a monetary judgment, even though the sum awarded was much less than claimed. There is no good reason to depart from the general rule that costs follow the event, except that the Claimants' unreasonable refusal to mediate justifies limiting their costs recovery to 70% from 1 May 2022 onwards. The Defendants' non-compliant settlement offer does not entitle them to costs protection. Costs of interlocutory applications are determined as set out in the judgment.

Court Disposition

Claimants awarded costs, subject to reduction and detailed assessment; Defendants' application for costs dismissed.

Orders

  • Claimants to have their costs of the proceedings, except that from 1 May 2022 recovery is limited to 70% of such costs.
  • Defendants' application for costs is dismissed.