The plaintiff had an order ‘That the Defendants do pay to the Plaintiff his costs of this action . . to be taxed . . failing agreement’ and the House was asked as to the time from when he was entitled to interest.
Held: A litigant who has been awarded costs in an action is entitled to interest on subsequently taxed costs from the date of judgment, and the same principle applies where there is a consent order, the relevant date being the date of the stay. Historically interest has always been awarded on costs generally from the date of judgment, and no distinction has ever been made between different types of costs, for example, costs of the action or of taxation. As to the incipitur rule: ‘It is the unsuccessful party to the litigation who, ex hypothesi, has caused the costs unnecessarily to be incurred. Hence the order made against him. Since interest is not awarded on costs incurred and paid by the successful party before judgment, why should he suffer the added loss of interest on costs incurred and paid after judgment but before the taxing master gives his certificate?’ (Lord Ackner)
Judges:
Lord Ackner
Citations:
[1990] 1 AC 398
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – Nykredit Mortgage Bank Plc v Edward Erdman Group Ltd (No 2) HL 27-Nov-1997
A surveyor’s negligent valuation had led to the plaintiff obtaining what turned out to be inadequate security for his loan. A cause of action against a valuer for his negligent valuation arises when a relevant and measurable loss is first recorded. . .
Cited – Thomas v Bunn HL 1991
From its enactment it was accepted that s 17 applied to orders for costs to be taxed – even though before taxation was completed there was no sum for which execution could be levied – and did so from the date of the order (the incipitur rule), not . .
Cited – Involnert Management Inc v Aprilgrange Limited and Others ComC 8-Oct-2015
Date from which interest was to run on principal damages award. . .
Lists of cited by and citing cases may be incomplete.
Costs, Damages
Updated: 09 December 2022; Ref: scu.183435