Gomba Holdings (UK) Ltd v Minories Finance Ltd (No 2): CA 1993

A clause entitling a mortgagee to recover legal costs from the mortgagor did not extend to costs that were unreasonably incurred or which were unreasonable in amount. Whether costs were unreasonably incurred or were unreasonable in amount was to be determined in accordance with the rules governing the taxation of costs on the indemnity basis under the Rules of the Supreme Court. The burden of showing that the costs were unreasonable in either respect was on the mortgagor and so that any doubts on those matters were to be resolved in favour of the mortgagee.
There is no jurisdictional reason why a costs judge should not assess the costs to which a party has become contractually entitled.
Scott LJ
[1993] Ch 171
England and Wales
See AlsoGomba Holdings UK Ltd v Minories Finance Ltd CA 1988
The court was asked as to ownership of documents coming into existence in the course of a receivership. The plaintiff companies had argued that all documents belonged to them because the receivers were their agents and the documents were created in . .

Cited by:
CitedTim Martin Interiors Ltd v Akin Gump Llp ChD 17-Nov-2010
The company borrowed money from a bank, who instructed the defendants to act in the loan. On recovering the loan, the borrowers challenged the amounts charged by the solicitors. The court was asked what were the powers for a third party paying a . .
AppliedThe Co-Operative Bank Plc v Phillips ChD 21-Aug-2014
The bank had brought possession proceedings against the defendant under two legal charges securing personal guarantees. The proceedings had been abandoned, but the court now was asked whether costs for the defendant should be on the standard or . .
CitedCallery v Gray (1) and (2) HL 27-Jun-2002
Success fees and ATE premiums were recoverable
Objection was made to a claimed uplift of 20% sought by the plaintiff’s solicitors. The defendant’s insurers said that there had been little at risk for them.
Held: The system of conditional fees insurance had been introduced to remedy defects . .

Lists of cited by and citing cases may be incomplete.
Updated: 22 October 2021; Ref: scu.426441