Lloyds Bank Plc v McBains Cooper  EWHC 30 (TCC)
Key areas: both parties win some issues; Basis of assessment; High Court
This was a ruling on costs issues arising from a main action.
The bank sought £1.8 million, but only obtained a judgment of £127,115, plus interest. This was less than 25% of its loss or less than 8% of its net claim.
The Claimant submitted that it was the successful party and should have all of its costs, with those from 31st January 2014 assessed on the Indemnity Basis, as it beat its own offer at trial. The Defendant submitted that it won on a number of discrete issues, and so an issues-based costs order was appropriate.
The Court noted that the Claimant made numerous offers during the proceedings, and that the Defendant had refused offers to mediate on many occasions.
The Court refused to award Indemnity Basis costs because the Claimant had hardened its stance, by alleging fraud. This gave the Defendant no option but to refuse.
The Court also rejected the suggestion that there should be an issues-based costs order as it was be disproportionate to try and identify costs relating to specific areas.
Overall, the Court awarded the Claimant 80% of its costs to a specific date with all of its costs thereafter. However, it had to deduct costs relating to specific Counsel’s fees that were incurred to issues that it failed on.
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