Kerry Underwood

RELIEF GRANTED AFTER FAILURE TO PAY COSTS

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In Singh and others v Charity Commission and others [2017] EWHC 2183 (Ch)

the Chancery Division of the High Court granted relief from sanctions in respect of a Claimant who had failed to comply with an order for payment on account of costs of £75,000.00, even though the Claimant was in breach of an Unless Order.

It was common ground that the default was serious and the judge was satisfied that there was no good reason for it.

As well as applying the test set out in Denton v TH White Ltd and others [2014] EWCA Civ 906, the court noted the further guidance in Oak Cash and Carry Ltd v British Gas Trading [2016] EWCA Civ 153 which required him to consider the delay under the original order and not simply the delay following on from the breach of the Unless Order.

Payment was made relatively soon after the Claimants lost their application to vary the Unless Order and the disruption to the court timetable was minimal.

The dates for the pre-trial review and trial was still available and the dates given in the directions would only need minor adjustment.

There would have to be a further Costs and Case Management Hearing, but that disruption was not sufficient so as to justify the continued debarring of a potentially good claim.

The judge also took into account the fact that the claim affected others beside the actual parties to the case.

The judge ordered the Claimants to pay the costs thrown away by the additional Costs and Management Conference, but allowed relief from sanction and allowed the claim to continue.

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Written by kerryunderwood

September 1, 2017 at 7:34 am

Posted in Uncategorized

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