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28 October 2011
Issue: 7487 / Categories: Case law , Law digest , In Court
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Costs

Motto and others v Trafigura Ltd and another [2011] EWCA Civ 1150, [2011] All ER (D) 138 (Oct)

In principle, and subject to the tests of reasonableness, proportionality and, where it applied, necessity, a claimant was entitled to recover the costs of advising and taking instruction on a settlement agreement and then in distributing any payout, as those plainly formed part of the costs of proceedings. However, it was open to a party to argue, and for a court to find, that the parties had agreed a departure from the normal rule. It was also clear that a judge could conclude that there should be a cut-off date after which no further costs of distribution could be claimed, although care had to be taken not to penalise a claimant unfairly by depriving him of the right to recover costs which had been reasonably and necessarily incurred solely because they were incurred later than they should have been.
 

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