Snapshot: Obtaining Indemnity Costs Against A Litigant In Jersey

In a recent further judgment in Cohen & Crooks as Joint Administrators for the Estate of James Donald Hanson & Anor v Arbitrage Research and Trading S.A. & Ors, the Royal Court of Jersey confirmed and developed the test for when indemnity costs will be awarded against an unsuccessful litigant. Ogier successfully appeared for BDO and Creditforce, and obtained an indemnity costs order against a trustee previously found to have misappropriated trust assets.

1. The starting point for the Court remains for it to ask itself whether or not a costs order should be made in favour of the successful party. The Court has a very broad discretion in addressing this preliminary question.

2. Once a winning party is identified, the Court goes on to consider on what basis costs should be awarded. The choice is between a standard basis order, and an indemnity basis order.