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12 February 2014 / Ewen Archibald , Masood Ahmed
Issue: 7594 / Categories: Features , Procedure & practice , Costs
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Should defendants’ costs always be met by the claimants where proceedings are discontinued? Masood Ahmed & Ewen Archibald investigate

In reversing the county court judgment in Nelson’s Yard Management Company and Others v Ezrefula [2013] EWCA Civ 235; [2013] All ER (D) 216 (Mar)—a case which concerned the determination of costs in circumstances when proceedings are discontinued—the Court of Appeal underlined the importance of litigants obtaining legal advice at the earliest stage of a dispute. The case illustrates that conduct which litigants may think insignificant, or not think about at all, could cost them substantially at a later stage of the litigation process.

In Nelson’s Yard , the claimants had asked the court to disapply the presumption in CPR 38.6(1) that the defendants’ costs will be met by the claimants where proceedings are discontinued. This request was declined by the recorder and the grounds of appeal were that he had exceeded his considerable discretion in giving insufficient weight to issues

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