Scenic International Group Limited (In Provisional Liquidation) v Richard Adenaike & Ors
[2024] EWHC 1178 (Ch)
ISG Retail Limited v FK Construction Limited (Consequential matters)
16 May 2024
[2024] EWHC 1159 (TCC)
High Court
A court case was handled using the wrong procedure. Instead of starting over, the judge decided to just fix the paperwork and continue. The judge also reviewed the legal fees and reduced the amount the losing side had to pay, finding some of the costs were excessive.
Key Facts
- •Part 8 proceedings dismissed.
- •Consequential matters: transfer to Part 7 and costs assessment.
- •Claimant (ISG) required substantial revision of Particulars of Claim.
- •Defendant (FK) sought dismissal; Claimant sought transfer to Part 7.
- •Significant costs incurred by both parties.
- •FK's initial cost claim: £191,506.30, later increased to £213,142.65.
- •ISG's cost claim: £115,001.70.
Legal Principles
Court's power to transfer Part 8 claims to Part 7 under CPR Part 8.1(4).
CPR Part 8.1(4)
Case management power under CPR 8.1(4) should be exercised in accordance with the overriding objective, considering factors like cost and speed of resolution.
CPR 8.1(4); Berkeley Homes (South East London) v John Sisk and Son Ltd [2023] EWHC 2152 (TCC) at [11]
Summary assessment of costs under CPR 44 PD 9.2(b); proportionality and reasonableness under CPR 44.3(5) and 44.4(1)(a).
CPR 44 PD 9.2(b); CPR 44.3(5); CPR 44.4(1)(a); RG Securities (No 2) Limited v Allianz Global Corporate and Speciality CE [2020] EWHC 2047 (TCC)
Outcomes
Proceedings transferred to Part 7.
Transfer deemed more likely to save costs and promote faster resolution than dismissal and restarting proceedings. While substantial revision of the Particulars of Claim was needed, the existing document provided a sufficient foundation.
FK's costs summarily assessed at £133,000.
FK's initial claim was deemed disproportionate. The assessment considered the complexity of the case, the work done by FK, the seniority of counsel, and a comparison with ISG's costs. Factors such as high counsel fees and disproportionate document costs were taken into account.
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