Court dismisses claimants' appeal in costs dispute

High Court Dismisses Claimants' Appeal in Costs Dispute

The High Court recently delivered a significant judgment in a case concerning the allocation of legal costs following a protracted legal dispute. The case, which involved multiple appeals and submissions, culminated in a decision that upheld the defendant's right to recover costs from the claimants.

The initial proceedings began with a Part 8 Claim Form filed by the claimants on 14 January 2021. The case saw a judgment handed down by Justice Lord Angus Glennie on 22 September 2023, which the claimants sought to appeal. However, their application for permission to appeal was refused on 21 December 2023.

Undeterred, the claimants filed a renewed permission application on 25 December 2023. This too was refused by Justice Robert French on 10 September 2024, following a decision on 2 September 2024 that denied the claimants' request for an oral hearing.

The claimants and defendant exchanged further submissions in October 2024, with the court ultimately issuing a decision on 22 October 2024 that reinforced the defendant's position. The defendant subsequently submitted a claim for costs on 25 October 2024.

The court's schedule of reasons clarified the interpretation of 'costs reserved', indicating that the question of costs could be addressed at a later stage. The claimants' submissions against the costs application were largely based on criticisms of the original judgment, which had already been addressed in their unsuccessful appeals.

In his reasoning, Justice French stated that there was no basis to deviate from the standard presumption that costs follow the event. Given the defendant's success in the action, the court ordered that the claimants pay the defendant's costs, to be assessed on the standard basis if not agreed.

This judgment serves as a reminder of the importance of understanding procedural terms such as 'costs reserved' and highlights the challenges involved in overturning costs orders. It underscores the court's adherence to the principle that costs should follow the outcome of the case, reinforcing the need for parties to carefully consider the merits of their appeals.

The decision was issued by Assistant Registrar Hayley Norton on 14 February 2025, concluding a lengthy and complex legal process.

Learn More

For more information on costs disputes and legal procedures, see BeCivil's guide to UK Employment Law.