BAILII is celebrating 24 years of free online access to the law! Would you consider making a contribution?
No donation is too small. If every visitor before 31 December gives just £1, it will have a significant impact on BAILII's ability to continue providing free access to the law.
Thank you very much for your support!
[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback] | ||
England and Wales High Court (Senior Courts Costs Office) Decisions |
||
You are here: BAILII >> Databases >> England and Wales High Court (Senior Courts Costs Office) Decisions >> Beckham & Anor v First News Ltd [2006] EWHC 90063 (Costs) (08 November 2006) URL: http://www.bailii.org/ew/cases/EWHC/Costs/2006/90063.html Cite as: [2006] EWHC 90063 (Costs) |
[New search] [Help]
SCCO Ref: PR 0605794 |
SUPREME COURT COSTS OFFICE
London, EC4A 1DQ |
||
B e f o r e :
____________________
DAVID BECKHAM (1) VICTORIA BECKHAM (2) |
Claimants/ Paying Parties |
|
- and – |
||
FIRST NEWS LTD |
Defendant/ Receiving Party |
____________________
Mr Nicholas Bacon (instructed by Carter Ruck) for the Defendant
Hearing date: 24 October 2006
____________________
Crown Copyright ©
Master Rogers
THE ISSUE
THE BACKGROUND
"UPON HEARING Counsel for the Claimants and Counsel for the Defendant
AND UPON THE DEFENDANT undertaking that it will:
1. Not further publish, licence or distribute or otherwise exploit the photographs taken of the Claimants' property that were published by the Defendant, without the express permission of the Claimants or an authorised representative of the Claimants;
2. Not take any further aerial photographs of the Claimants' property which are the same as, colourably similar to, those complained of without the express permission of the Claimants or an authorised representative of the Claimants;
3. Remove the photographs of the Claimants' property from its website forthwith;
4. Deliver up the photographs (whether the originals or any copies) forthwith to Harbottle & Lewis LLP.
IT IS ORDERED THAT:
1. The Claimants be given permission to accept the Defendant's Part 36 Offer made on 14 February 2005 and the Defendant's Part 36 Payment made on 15 February 2005, out of time;
2. The Claimants be given permission to file a Notice of Acceptance and Request for Payment Form with the Court and the Court Funds Office and to serve a copy on the Defendant in respect of the Defendant's Payment made into Court on 15 February 2005 with the principal sum of £6,000 being paid out to Harbottle & Lewis LLP and the interest which has accrued thereon being paid out to Carter-Ruck and the Court Funds Office shall be responsible for arranging the payment out of Court;
3. The Defendant shall pay the Claimants' costs of the proceedings up to and including 25 April 2005, such costs to be the subject of detailed assessment, if not agreed;
4. The Claimants shall pay the Defendant's costs from 26 April 2005, such costs to be the subject of detailed assessment, if not agreed, to include for the avoidance of doubt the costs of the Claimants' application dated 13 December 2005;
5. The trial which is listed for 27 February 2006 with a time estimate of 4-5 days be vacated and all further proceedings in this action be stayed except for the purpose of carrying out the terms of settlement and for this purpose the parties are at liberty to apply."
THE DETAILED ASSESSMENT PROCEEDINGS
THE DEFENDANT'S CFA WITH ITS SOLICITORS
"(i) Lose
You have not "won" as defined in "m".
(l) Part 36 offers or payments
In the event that you decide to make a Part 36 offer and/or Part 36 payment, which your Opponent does not accept, then in the event that the court awards the sum of damages equal to or less than the amount in the Part 36 offer then we would be entitled to charge our basic charges plus the success fee in respect of the costs since the date of the Part 36 offer/payment.
(m) Win
The case is finally decided in your favour, whether either:
(i) by the court dismissing the claim or your Opponent discontinuing the claim; or
(ii) by the claim being settled on terms which do not include the payment by you of a sum equal to or more than £6,000 by way of compensation; or
(iii) where the court awards a sum of damages of less than or equal to the Part 36 offer and payment you have made dated 15 February 2005 (in which case then we would be entitled to charge our basic charges plus a success fee in respect of the costs from the date of the Part 36 offer/payment).
"Finally" means that your Opponent:
· is not allowed to appeal against the court's decision; or
· has not appealed in time; or
· has lost any appeal"
COUNSEL'S CFA WITH THE SOLICITORS
"19.
1) "Success" means the same as "win", as defined in condition 3(m) of the Conditional Fee Agreement between the solicitor and the client dated 6 April 2005 save that in relation to sub-paragraph (ii) therein, a "win" is defined for the purposes of this Conditional Fee Agreement as "by the claim being settled on terms which do not include the payment by you of a sum more than (and not a sum equal to or less than) £6,000 by way of compensation".
2) Subject to paragraphs 20, 23 & 26 hereof, in the event of success the solicitor will pay counsel his normal and success fees.
3) If the client is successful at an interim hearing counsel may apply for summary assessment of solicitor's basics costs and counsel's normal fees."
"Harbottle & Lewis Without Prejudice
DX 44617 Mayfair Save as to Costs
Part 36 Offer and Payment
Dear Sirs
First News Limited and David and Victoria Beckham
In accordance with Part 36 of the Civil Procedure Rules, our client is prepared to make the following offer in full and final settlement of your clients' claim against it:
1. The payment of £6,000 in damages. (We attach, by way of service a copy of the payment notice and receipt and confirm that this sum has been paid into court today);
2. To remove the photographs from our client's website (as our client has already done);
3. To undertake not to further publish, licence or distribute or otherwise exploit the Photographs, and not to take any further aerial photographs of your client's property which are the same as, or colourably similar to, those complained of without the express permission of your clients or an authorised representative of your clients.
4. To deliver up the Photographs (whether originals or copies);
5. Payment of your clients' costs, on the standard basis, to be assessed if not agreed. We expressly reserve the right to draw to the attention of the Costs Judge the correspondence in this matter when the question of costs falls to be considered.
Pursuant to Part 36.5(6)(a) we notify you that this offer will remain open for acceptance for 21 days. We are also obliged to inform you, pursuant to Part 36.5(6)(b) that, after the said 21 day period, your clients will only be able to accept the offer if the parties agree the liability for costs or if the Court gives permission.
If your clients give notice of the acceptance of the Part 36 Payment, then pursuant to Part 36.4(3)(b) they will be treated as also accepting the Part 36 offer.
We draw your attention to Part 36.20 and put you on notice that should the offer not be accepted by your clients and should at trial your clients fail to better the Part 36 payment or fail to obtain a judgment which is more advantageous than the Part 36 Offer, our client will seek its costs incurred after the latest date on which the payment or offer could have been accepted without needing the permission of the Court.
Kindly acknowledge receipt of this letter.
Yours faithfully
Carter-Ruck"
"Part A
We, Harbottle and Lewis LLP, on behalf of the Claimants intend to apply for an order, a draft of which is attached, for permission to accept the Defendant's Part 36 Offer and Payment more than 21 days after the date that they were made and for the Court to make an Order as to costs
because the parties do not agree the liability for costs and as a consequence the permission of the Court is sought pursuant to CPR part 36.11(2)(b)(ii). In the circumstances, the Court is also asked to make an Order as to costs pursuant to CPR Part 36.11(3).
We wish to have the application dealt with by Master Turner prior to the hearing of the Defendant's application dated 10 November 2005.
Part B
We wish to rely on the attached Witness Statement of Louise Justine Prince dated 5 December 2005".
"m (iii) where the Court awards a sum of damages of less than or equal to the Part 36 offer and payment you have made dated 15 February 2005 ..."
THE CLAIMANTS' SUBMISSIONS
"But the conclusion of an action by payment by payment into court is something quite different from its conclusion by a judgment. In Coote v. Ford Stirling J clearly explained the effect upon a cause of action of the taking out of money which has been paid in in respect of it. The payment in implies no admission about the merits of the cause of action; there has been no adjudication upon it and therefore no estoppel is created. What has happened is simply that the claim arising out of the cause of action has been settled, just as it would have been settled by a payment under a compromise".
"36.11 – (1) A claimant may accept a Part 36 offer or a Part 36 payment made not less than 21 days before the start of the trial without needing the court's permission if he gives the defendant written notice of acceptance not later than 21 days after the offer or payment was made
(Rule 36.13 sets out the costs consequences of accepting the defendant's offer or payment without needing the permission of the court)
(2) if -
(a) a defendant's Part 36 offer or Part 36 payment is made less than 21 days before the start of the trial; or
(b) the claimant does not accept it within the period specified at paragraph 1 –
(i) if the parties agree the liability for costs, the claimant may accept the offer or payment without needing the permission of the court;
(ii) if the parties do not agree the liability for costs the claimant my only accept the offer or payment with the permission of the court".
"19 Master Turner was not awarding damages – indeed, he was not in a position to do so, nor was he asked to do so. That would have occurred at trial (set for 4–5 days on the 27th February 2006 before a High Court judge). Master Turner had no input into the £6,000 figure – he simply decided whether he would allow the settlement to occur out of time and, more importantly what the consequences of that were to be.
20 Moreover, the distinction between an award of damages and a settlement is fundamental. If the Defendant here was unhappy with Master Turner's decision it could appeal his decision to allow the offer to be accepted out of time. What it could not appeal was the £6,000 figure. By contrast, if Master Turner had been seized of the issue of damages and had awarded the Claimants £6,000 or some other figure then that award could have been appealed. Judicial involvement in deciding the amount payable (and not merely the consequences) is a fundamental distinction between an award and a settlement.
21 This is abundantly obvious. A payment into court is no more than an offer to dispose of the claim on terms – to achieve a settlement – the very thing that m(ii) is drafted to address. It has a fundamental distinction from an award by a court because it implies no admission or judicial finding about the merits of the claim and there is no adjudication on those merits. As the Defendant states in the Points of Dispute "the Defendant's payment into court was without prejudice to its position that the claim was unmeritorious". No judicial ruling has ever been made on the merits of the claim per se or the amount of damages sought".
THE DEFENDANT'S SUBMISSIONS
"1. To examine the matter and adjudicate upon its merits; to decide, determine after consideration or deliberation; to grant or assign (to a person) by judicial or deliberate decision, to a judge; and "judicial decision".
"26 The rules use the language of offer and acceptance and contain provisions relating to the withdrawal of both a Part 36 payment and a Part 36 offer. Further, if an offer within Part 36 is accepted in accordance with Part 36, a compromise results. But as Goddard LJ said in Cumper v Pothecary [1941] 2 KB 58, 67, "there is nothing contractual about payment into court. It is wholly a procedural matter and has no true analogy to a settlement arranged between the parties out of court, which, of course, does constitute a contract". This, in my view, remains the position with Part 36 payments. This is not, I think, inconsistent with the decision in Scammell v Dicker [2001] 1 WLR 631, which concerned Part 36 offers for which the analogy with contract is closer. In so far as Henriques J may have expressed a different view in Chainrai v Boston (unreported) 11 July 2002, I am inclined to disagree. The facts and issue in that case were most unusual and his view on this point did not, I think, dictate the result.
27 Whether or not the structure of Part 36 payments is to be characterised as contractual, the issue in the present appeal, as in Scammell v Dicker [2001] 1 WLR 631, concerns withdrawal, a Part 36 has express provisions relating to withdrawal of both a Part 36 offer and a Part 36 payment. A defendant who wishes to make a Part 36 payment has to make an offer to which the relevant provisions of Part 36 are attached. One of these is that a Part 36 payment may be withdrawn or reduced only with the permission of the court: rule 36.6(5). In my judgment, this provision is clear and it relates to the offer which the Part 36 payment comprises. I reject the submission that the offer and the payment into court are separate and that rule 36.6(5) relates to the latter but not to the former. On the contrary, the defendant has chosen to make on offer by means of a Part 36 payment with an attribute that it may be withdrawn or reduced only with the court's permission. By contrast, the provision which relates to the withdrawal of a Part 36 offer is unqualified".
"The answer to his contention is that there is nothing contractual about payment into court. It is wholly a procedural matter and has no true analogy to a settlement arranged between the parties out of court which of course does constitute a contract. When once the seven days have expired the plaintiff can only get the money if he can obtain an order and before the court makes an order it must consider whether it is right to do so".
"We can see no ground for putting such a limit on the powers of the court. If the court can in any circumstances refuse an order it is plain that a making or refusing an order the court must be action judicially and not administerily".
MY DECISION