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ARTICLE · 24 MAY 2018

Costs - Ashany v Eco-Bat Technologies

Court of Appeal considers costs consequences where claimant discontinued claim.

United KingdomLitigation, Mediation & Arbitration

Costs - Ashany v Eco-Bat Technologies

Court of Appeal considers costs consequences where claimant discontinued claim.

Unless the parties agree, or the court orders, otherwise, the normal costs consequence of a claimant discontinuing its claim is that the claimant will be liable for the costs incurred by the defendant up to the date on which the notice of discontinuance was served. At first instance in this case, that presumption was disapplied, and the defendant appealed.

The Court of Appeal commented that "The presumption in r.38.6 arises because, in the ordinary case, the discontinuance of a claim by a claimant against a defendant will usually amount to an admission or an acceptance that the proceedings should never have been commenced. In such a case, the starting point must be that the defendant is entitled to its costs, and that is reflected in the default rule". But here, the proceedings had been commenced because of "considerable prevarication and delay"

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