Key Facts
- •Claimant (South Tees Development Corporation & South Tees Developments Limited) and Third Party (Teesworks Limited) argued that Defendant (PD Teesport Limited) had no rights of way across their land.
- •Defendant claimed rights of way over three significant routes, including emergency access to Teesport.
- •Defendant abandoned several claims to rights of way at the start of the trial.
- •Defendant made a Calderbank offer to settle two weeks before trial, which was rejected.
- •The trial lasted six weeks.
Legal Principles
General rule on costs: unsuccessful party pays the costs of the successful party.
CPR 44.2(2)(a)
Court's discretion to depart from general rule on costs, considering all circumstances, including conduct of parties and whether a party succeeded on part of its case.
CPR 44.2(2)(b), (4)
Guidance on issue-based cost orders: a mere lack of success on some issues doesn't justify such an order; it's appropriate if a discrete issue caused additional costs, especially if raised unreasonably.
Pigot v Environment Agency [2020] EWHC 144
Relevance of reasonableness in raising failed points; failure to win on every issue is less significant than failing to offer to meet the winner's true entitlement.
Budgen v Andrew Gardner Partnership [2002] EWCA Civ 1125
Calderbank offers (without prejudice save as to costs) can be considered when determining costs, even if not strictly compliant with Part 36.
Coward v Phaestos [2014] EWCA Civ 1256, CPR 44.2(4)(c)
Outcomes
Defendant declared successful party.
Defendant established rights of way over key routes, including emergency access.
Costs order: Defendant to receive 80% of its costs until the rejection of its offer, and 100% thereafter.
Balancing Defendant's overall success with the abandonment of some claims and the rejected Calderbank offer.
20% deduction from Defendant's costs to account for abandoned claims.
Claims should have been abandoned earlier; Claimant and Third Party avoided duplication of costs; the abandoned claims did not significantly impede development.