Saudi Arabian Airlines Corporation v Sprite Aviation No 6 DAC
[2024] EWHC 797 (Comm)
Flavio de Carvalho Pinto Viegas & Ors v José Luis Cutrale & Ors
22 October 2024
[2024] EWHC 2778 (Comm)
High Court
Two sides fought over whether to have a mini-trial first to decide one part of a bigger case. The side that won the mini-trial argument got some of its legal costs paid by the other side, but not as much as they wanted because the judge thought the initial costs were too high.
Key Facts
- •Application for trial of preliminary issue
- •Defendants sought 40% of their £292,919.16 costs (£117,167.66)
- •Claimants opposed the application, arguing for costs to be reserved or costs in the application
- •Preliminary issue concerned limitation, requiring expert Brazilian law evidence
- •High costs incurred due to contested nature of the application
- •Defendants were successful in their application.
Legal Principles
In interlocutory applications, costs follow the event (the successful party generally recovers costs).
Implicit in the judgment
Where a preliminary issue application is dealt with speedily, costs may be costs in the application or reserved.
Implicit in the judgment
In assessing reasonable costs, the touchstone is the lowest amount reasonably expected to be spent for proficient case conduct, considering all circumstances. Expenditure exceeding this is for the receiving party's account.
Kazakhstan Kagazy Plc v Zhunus [2015] EWHC 404 (Comm)
Outcomes
Defendants entitled to recover 40% of their costs from Claimants.
Defendants were successful; the contested nature of the application led to significantly higher costs.
Interim payment on account set at £225,000.
High costs claimed, high hourly rates, numerous solicitors involved, high counsel fees. Caution required given potential for significant cost reduction on detailed assessment.
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