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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Messrs Dean & Dean Solicitors v. Dionissiou-Moussaoui [2008] UKEAT 0140_08_1407 (14 July 2008) URL: http://www.bailii.org/uk/cases/UKEAT/2008/0140_08_1407.html Cite as: [2008] UKEAT 140_8_1407, [2008] UKEAT 0140_08_1407 |
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At the Tribunal | |
Before
HIS HONOUR JUDGE McMULLEN QC
(SITTING ALONE)
(2) DR S MIRESKANDARI (3) MR J BELL (4) MR T EDWARDS (5) MR B HOFFMAN |
APPELLANTS |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR ROBIN ALLEN QC (of Counsel) Instructed by: Messrs Dean & Dean Solicitors 21 Gloucester Place London W1U 8HR |
For the Respondent | MR DANIEL TATTON-BROWN (of Counsel) Instructed by: Messrs Moreland & Co Solicitors Moreland House 5 St Michael's Terrace London N22 7SJ |
SUMMARY
PRACTICE AND PROCEDURE: Costs
The Employment Judge did not err in principle or omit a relevant or consider an irrelevant factor when dismissing Respondents' applications for costs when much of a sex discrimination case was struck out.
HIS HONOUR JUDGE McMULLEN QC
Introduction
The legislation
"40. - …
(2) A tribunal or chairman shall consider making a costs order against a paying party where, in the opinion of the tribunal or chairman (as the case may be), any of the circumstances in paragraph (3) apply. Having so considered, the tribunal or chairman may make a costs order against the paying party if it or he considers it appropriate to do so.
(3) The circumstances referred to in paragraph (2) are where the paying party has in bringing the proceedings, or he or his representative has in conducting the proceedings, acted vexatiously, abusively, disruptively or otherwise unreasonably, or the bringing or conducting of the proceedings by the paying party has been misconceived."
"The Tribunal may have regard to the paying party's ability to pay when considering whether it shall make a costs order or how much that order should be."
The facts relevant to the appeal
"2.1 Mr Epstein, for the Respondents, applied for costs against the Claimant in respect of the withdrawal of the claim against Messrs, Bell, Edwards and Hoffman. The grounds for the application were that it was unreasonable conduct to bring proceedings against these three individuals because they were not said to be agents in any of the acts of discrimination alleged to have been committed by the First Respondent or any other person. No claims were made against the three individuals and order for costs covering the time spent by those three individuals was sought, against the Claimant, in the sum of £4,065.
2.2 Mr Pearman opposed the application for costs on the grounds that the claims had been properly pleaded against the three individuals named with Dr Mireskandari as the partners trading as Dean & Dean. The First Respondent was substituted for the three named individuals at the previous case management discussion and the reason for the inclusion of the three individuals was by virtue of the provisions of the Partnership Act. Mr Pearman argued that there was no material change and unreasonable conduct would have to be higher than this. He argued that the amount claimed was disproportionate and it was not right for the three individuals to claim costs as if they were solicitors acting for lay clients.
2.3 The Chairman considered the provisions of rule 40(3) of the Employment Tribunal Rules of Procedure 2004. The claim was brought against the three individuals who have been dismissed, and Dr Mireskandari together trading as Dean & Dean. The First Respondent was substituted at the case management discussion. The Chairman was satisfied that the issues would have been largely the same and it was difficult to see how the four individuals would have needed separate legal advice. The Chairman was not satisfied that this amounted to unreasonable conduct and in these circumstances made no order for costs."
"3.3 The Chairman considered the application for costs under rule 40(3) of the Employment Tribunal Rules of Procedure 2004. The application is made on the grounds that those parts of the claims that were struck out had no reasonable prospect of success or were misconceived. This is a ground for making an order for costs and therefore the Chairman must consider the application and may make an award for costs. The Chairman took in account that she had struck out a large part of the Claimant's claim for the reasons given. However, it was clear that this was a case where both parties would contest each allegation. The Chairman noted that there had already been a warning at the case management discussion concerning the need to take into account the overriding objective. The issues before the Chairman on this occasion had not been easy, in a large part because of the unsatisfactory nature of the dispute resolution regulations. In addition part of the Claimant's claim in relation to victimisation will proceed to a hearing. The Chairman made no comment on the amounts set out in the Respondents' schedule.
3.4 The Chairman was not satisfied that this was a case where she should exercise her discretion to order costs… ."
The Respondents' case
"The appeal in a nutshell. The essence of the appeal is that Judge Lewzey has inadequately addressed the powers that she has under the ET Rules in the overall context of the conduct of the litigation by the Claimant."
The Claimant's case
Discussion and conclusions
"In the first place this is an appeal from the discretion of the Judge, and although the discretion of the Judge with respect to the mode of trial is a discretion which ought to be exercised with great care, the Judge below, who has all the facts before him, has a certain margin of discretion, which ought to be left to him, and therefore appeals of this sort ought not to be brought except in clear cases. …
…That discretion, like other judicial discretions, must be exercised according to common sense and according to justice and if there is a miscarriage in the exercise of it, it will be reviewed, but still it is a discretion, and for my own part I think that when a tribunal is invested by Act of Parliament or by rules with a discretion, without any indication in the Act or Rules of the grounds upon which the direction is to be exercised, it is a mistake to lay down any rules with a view of indicating the particular grooves in which the direction should run, for if the Act or the Rules did not fetter the discretion of the Judge why should the Court do so?"
"So in our case, whilst we shall examine the cases to which we have been referred, we must be at pains to remember, firstly, that those cases cannot fetter the jurisdiction as to costs conferred upon the employment tribunal by the rules and, secondly, we must avoid the common, error of construing the cases rather than the statute. The proper test for the employment tribunal was not whether its order accorded with this authority or that but, ultimately, to borrow the phrase from Morritt LJ, whether it was just to have exercised as it did the power conferred upon it by the rule. We must remember, too, that the test for us is different to that which was appropriate to the employment tribunal. We must not consider whether we would have ordered as the chairman did but instead ask ourselves whether the employment tribunal took into account matters which it should not have done, or failed to take into account that which it should have done or whether in some other way it came to a conclusion to which no employment tribunal properly directing itself could have arrived – see eg Carter v Credit Change Ltd [1979] IRLR 361 at 363.16."
Thus, extreme caution must be exercised on appeal when a judge has addressed the correct Rule and has exercised her discretion not to make an exceptional award of costs.
"The outcome was not all claims were struck out but most of them were and there is no appeal by the Claimant against, for example, finding that there was no continuing act or that such claims should only be dealt with a la Hendricks at the conclusion of the hearing by a three-person Tribunal."
.
Appeal
Costs