Daniel McAteer v Hat & Mitre (in liquidation) & Ors
[2024] EWHC 1746 (Ch)
Anthony James Broom v Maria Del Pilar Molina Aguilar (Costs)
29 July 2024
[2024] EWHC 1961 (Ch)
High Court
A wife successfully appealed a bankruptcy court order against her. The judge said she should get all her legal costs paid by her husband's bankruptcy trustee. The judge also ordered an advance payment of a large part of those costs, despite arguments from the trustee to pay less and later.
Key Facts
- •Appeal and cross-appeal against District Judge Taylor's decision (16 November 2023) on an application under section 375 of the Insolvency Act 1986.
- •Appellant sought to set aside an order (18 March 2015) requiring her to pay significant sums.
- •Appeal allowed on grounds 1 and 4, concerning the English court's jurisdiction over a person living abroad.
- •Appellant sought costs for the appeal, cross-appeal, and section 375 application, and a payment on account.
- •Respondent accepted costs liability but disputed the amount and payment timeframe.
Legal Principles
Costs are in the discretion of the court.
Senior Courts Act 1981, section 51(1); CPR rule 44.2(1)
The general rule is that the unsuccessful party pays the costs of the successful party.
CPR rule 44.2(2)(a)
The court may make a different costs order considering all circumstances, including conduct and settlement offers.
CPR rule 44.2(2)(b), 44.2(4)
Service of proceedings, not issue, activates the litigious process and imposes procedural obligations.
Dresser UK Ltd v Falcongate Freight Management Ltd [1991] 1 QB 502
A potential defendant within the jurisdiction has no duty to volunteer to be served.
Re Evans [1893] 1 Ch 252; Barton v Wright Hassall LLP [2018] 1 WLR 1119; Cameron v Liverpool Victoria Insurance Co Ltd [2019] 1 WLR 1471
Rejection of a party's evidence doesn't automatically mean reprehensible conduct for costs purposes.
Deutsche Bank AG v Sebastian Holdings Inc [2016] 4 WLR 171
A trustee in bankruptcy is personally liable for costs, subject to indemnity from the estate.
BPE Solicitors v Gabriel [2015] AC 1663
Where costs are ordered subject to detailed assessment, a reasonable sum on account should be ordered unless there's good reason not to.
CPR rule 44.2(8)
The court has power to extend time for lodging an appellant’s notice.
CPR rule 52.12(2)(a)
Outcomes
Respondent to pay appellant's entire costs of the application, appeal, and cross-appeal.
Appellant was the overall successful party, mainly due to winning on the jurisdictional point. Other issues were considered minor.
Respondent to pay £47,000 on account of costs within 14 days.
This reflects a 30% discount applied to the costs schedules to account for potential reductions on assessment. The court rejected the respondent's proposed further discount.
Time for lodging an appellant’s notice with the Court of Appeal is 21 days from the date of the order.
Parties agreed to this extension, and the court has the power to stipulate the period.