Key takeaways
Court rejects indemnity cost request
Claimants denied full recovery due to conduct
Good faith claim not accepted
Court finds claimants’ behaviour fell short
Interim payment ordered despite dispute
£1.5 million awarded pending full cost review
The Commercial Court today considered consequential matters following judgment delivered earlier this year in Athena Capital -v- The Secretariat of State of the Holy See. Today’s hearing concerned two matters: (a) the wording of the declarations the Court was willing to give and (b) the costs consequences of the Judgment.
As regards the declarations, the SdS has invited the Court to word the declarations as narrowly as possible in light of the Judgment. The Court will reflect on the precise wording and will release its decision anticipated next week.
With regards to the costs, the Claimants sought their costs of the entirety of the action on an indemnity basis. The indemnity basis was stated to be applicable as a result of what the Claimants alleged to be the inappropriate manner in which the SdS has conducted this litigation. The Court rejected that suggestion, consistent with the SdS’s position that there was nothing untoward in its conduct of this litigation.
Furthermore, even though the premise of the Claimants’ submissions was that the usual position in the English courts when a claim has been allowed (and there is no counterclaim) is that the claimant will recover its costs of the action, in light of the fact that the Court rejected the Claimants’ contention that they had acted in good faith, the Court disallowed 50% of their costs.
No order was made as to the precise costs figure payable, which will remain to be determined through the detailed assessment process. The court ordered an interim payment on account of costs in the sum of £1.5million.
For further information, please contact Paul Walsh and Jon Scally.
