Days Healthcare UK Ltd v Pihsiang Machinery Manufacturing Co Ltd and others
[2006] All ER (D) 205 (Jun); [2006] 4 All ER 233 ; [2006] EWCA 1444 (QB)
Citation: [2006] All ER (D) 205 (Jun); [2006] 4 All ER 233; [2006] EWCA 1444 (QB)
Facts:
The defendants were ordered to pay damages to the claimant and costs to be assessed if not agreed. They were ordered to make an interim payment on account of costs of £2 million. The defendants were granted permission to appeal but that appeal was struck out because they had not complied with a condition that inter alia they paid the interim payment on account of costs. In costs assessment proceedings the claimant served its bill and the defendants served very lengthy points of dispute. The costs hearing was estimated to last 30-40 days with costs itself of c£350,000. The claimant applied for an order that unless the interim costs order were paid with interest, a final costs certificate should be issued in the amount claimed. The costs judge refused the application and expressed the view that he had serious reservations as to whether he could make such an order at all.
Held:
(i) Appeal allowed. The defendants would not be allowed to take part in the detailed assessment unless they made payment of the interim payment on account of costs together with interest upon it. The order would not preclude the defendants from pursuing their arguments on assessment, but only if they failed to make the payment which they had been ordered to make. Their contempt provided a proper basis for that order.
(ii) In the exercise of its inherent jurisdiction to control its own processes the Court had the power to make an order debarring the defendants from taking part in a detailed costs assessment because of their failure to obey a court order. It would be concerning if the court was unable to impose sanctions on those who chose to ignore its orders and yet continued to seek to use its processes for its own ends.
Comment:
The full judgment must be read in order that the gravity of the defendants' conduct becomes clear. They had been committed for contempt in failing to attend court when attempts were made to enforce the judgment in the substantive claim.