header-logo header-logo

Case discontinued: but who pays the bill?

04 October 2024 / Claudine Morgan , Mary Barrett
Issue: 8088 / Categories: Features , Procedure & practice , Costs
printer mail-detail
191464
Claudine Morgan & Mary Barrett on why defendants should not presume their costs will be met when claims are discontinued
  • Examines six key principles provided by the Court of Appeal in Brookes v HSBC plc on the disapplication of CPR 38.6, in relation to what will and will not be considered.

There are many different reasons for discontinuance of a claim. Generally speaking, regardless of the reason, the defendant is entitled to recover its costs up to the date of discontinuation. This fundamental entitlement is provided for in Civil Procedure Rule (CPR) 38.6(1):

‘Unless the court orders otherwise, a claimant who discontinues is liable for the costs which a defendant against whom the claimant discontinues incurred on or before the date on which notice of discontinuance was served on the defendant.’

This is consistent with CPR 44.2(2), with the general rule being that the unsuccessful party will be ordered to pay the costs of the successful party. Common sense certainly dictates that the defendant

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Quinn Emanuel—James McSweeney

Quinn Emanuel—James McSweeney

London promotion underscores firm’s investment in white collar and investigations

Ward Hadaway—Louise Miller

Ward Hadaway—Louise Miller

Private client team strengthened by partner appointment

NLJ Career Profile: Kate Gaskell, Flex Legal

NLJ Career Profile: Kate Gaskell, Flex Legal

Kate Gaskell, CEO of Flex Legal, reflects on chasing her childhood dreams underscores the importance of welcoming those from all backgrounds into the profession

NEWS
Overcrowded prisons, mental health hospitals and immigration centres are failing to meet international and domestic human rights standards, the National Preventive Mechanism (NPM) has warned
Two speedier and more streamlined qualification routes have been launched for probate and conveyancing professionals
Workplace stress was a contributing factor in almost one in eight cases before the employment tribunal last year, indicating its endemic grip on the UK workplace
In NLJ this week, Ian Smith, emeritus professor at UEA, explores major developments in employment law from the Supreme Court and appellate courts
Writing in NLJ this week, Kamran Rehman and Harriet Campbell of Penningtons Manches Cooper examine Operafund Eco-Invest SICAV plc v Spain, where the Commercial Court held that ICSID and Energy Charter Treaty awards cannot be assigned
back-to-top-scroll