The claimant was a co-operative and owned the freehold of a block of flats where the defendant was a lessee. The claimant commenced proceedings for non payment of service charges, to which the defendant counterclaimed for damages estimated at pounds 500,000 for breach of the claimant’s obligations as a landlord. Following an 11 day trial the counterclaim was dismissed and judgment entered against D who was ordered to pay the costs of the counterclaim subject to detailed assessment. pounds 120,000 was paid on account and the claimant’s bill was for pounds 350,000. The defendants raised before the Costs Judge the issue of proportionality but the Costs Judge held that the costs were not apparently disproportionate and proceeded over three days to assess the bill, which he reduced to pounds 300,000.
On appeal the Judge held that the Costs Judge had misdirected himself in respect of the Lownds test, and remitted the case to a different Costs Judge to consider whether the costs as assessed were proportionate or not. If they were, then the assessment was to stand, but if not, presumably it would have to start de novo.
However the Judge said that it was not necessary for a Costs Judge to go through the items set out in CPR 44.5 as a check list in deciding the question of proportionality under the Lownds principle.
Citations:
[2003] EWHC 9041 (Costs)
Links:
Jurisdiction:
England and Wales
Costs
Updated: 05 April 2022; Ref: scu.235567