Key Facts
- •Paul Black, a prisoner, had a judicial review claim against the Secretary of State for Justice (SSJ) dismissed with a costs order of £2,856.
- •Black subsequently won a county court claim against the Ministry of Justice (MOJ) for £150 damages.
- •The SSJ applied to the High Court for a set-off of the £150 damages against the outstanding £2,856 costs.
- •The application was made in the context of the concluded judicial review proceedings.
Legal Principles
The High Court has jurisdiction to permit set-off of sums payable under judgments and orders from different courts.
CPR 40.13A and Section 72 of the County Courts Act 1984
The court has a discretionary jurisdiction to order a set-off between different liabilities, applying the test of what is just in the circumstances.
Fearns v Anglo-Dutch Paint & Chemical Co Limited [2010] EWHC 2366 (Ch)
Outcomes
The High Court granted the SSJ's application for set-off.
The court found it just to allow the set-off, considering the connection between both claims relating to prison correspondence and the unfairness of allowing Black to receive damages while owing significant unpaid costs. The court also considered, and rejected, various arguments raised by Black.
The £150 damages awarded to Black in the county court will be set off against the £2,856 costs he owes the SSJ from the High Court.
This decision balances the justice in both cases, preventing Black from benefiting from a 'double standard' by receiving damages while ignoring his cost liability.
The court deferred a decision on costs until further submissions were received.
The court acknowledged procedural issues with the initial costs submissions.