header-logo header-logo

04 October 2024 / Claudine Morgan , Mary Barrett
Issue: 8088 / Categories: Features , Procedure & practice , Costs
printer mail-detail

Case discontinued: but who pays the bill?

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 should not have to bear the burden of costs

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

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
back-to-top-scroll