Recovery of Interest on Costs

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The question of recovery of interest on costs continues to be a contentious issue and in Bridle v Ikhlas (22nd February 2011 Oxford County Court) the Court held that it should apply its discretion in favour of the Defendant in a case that had been funded under a CFA. The Court therefore reached the same conclusion as in Gray v Toner.

Despite these decisions interest is still being awarded on some assessments and at some stage we can expect an argument about this to reach the Court of Appeal.

Some other recently reported cases may be of interest:-

1. Yao Essaie Motto & Ors v Trafigura which dealt with a number of costs issues and included at paragraph 463 to 466 a decision approving the recovery of funding costs relating to a CFA.
2. Haywood v MIB where the regional Costs Judge allowed a "mini-trial" on the issue of exaggeration and allowed the Defendant to rely upon surveillance footage within the costs proceedings.
3. Lisbie v SKS Scaffolding Ltd which dealt with the meaning of the words "the agreed damages" for the purposes of RTA fixed recoverable costs where there had been a deduction for contributory negligence and whether the claim fell under Section II of CPR Part 45 or the Small Claims Track.

If you have any queries about this, or indeed about any costs issue, please do not hesitate to contact me.

Andrew Neat

A Neat Legal Services - Law Costs Draftsmen and Legal Costs Consultants