Donal Pugh v (1) Harris Calman Construction Limited and (2) Stanners Design Limited
Monday, 30 June 2003
Key terms: Defendant's liability for adjudicator's fees - costs recoverable - Part 24 - small claims track - proportionality of adjudicator's costs - Part 44.3 - Part 45.4
Mr Pugh was the Adjudicator appointed to determine a dispute between Harris Calman and Stanners. The adjudication was completed, but the parties did not pay all of his fees. He brought a claim for the balance of fees in the sum of £1,840.05.
The first defendant, Harris Calman, paid his proportion of the fee (approximately 60%), but the second defendant did not. The first defendant said that the second defendant was liable, while the second defendant raised jurisdictional challenges. Before the Court dealt with the matter under Part 24 the second defendant paid the balance of the fees, interest and fixed costs. The only outstanding issue was how the claimant's costs were to be dealt with.
DJ Trent held that the parties must pay those costs. The defence was wholly misconceived and the claimant would have succeeded had the matter gone to a small claims hearing. The second defendant argued that there was a jurisdictional objection, but the Judge was not at all impressed holding that the real reason for non-payment was quite simply an attempt to delay matters.
The costs were £2,600, which the Court considered disproportionate given the amount of the claim and that it was allocated to the small claims track. Further, fixed costs would normally be appropriate pursuant to CPR rule 45.4. Nonetheless, DJ Trent held that the Court could exercise its jurisdiction under CPR 44.3, and so doing held that fixed costs were not appropriate. He held that the costs should be awarded on a indemnity basis.
Many thanks to Mr Issacs of 3 Paper Buildings, Temple, London for providing notes in respect of this case.
The first defendant, Harris Calman, paid his proportion of the fee (approximately 60%), but the second defendant did not. The first defendant said that the second defendant was liable, while the second defendant raised jurisdictional challenges. Before the Court dealt with the matter under Part 24 the second defendant paid the balance of the fees, interest and fixed costs. The only outstanding issue was how the claimant's costs were to be dealt with.
DJ Trent held that the parties must pay those costs. The defence was wholly misconceived and the claimant would have succeeded had the matter gone to a small claims hearing. The second defendant argued that there was a jurisdictional objection, but the Judge was not at all impressed holding that the real reason for non-payment was quite simply an attempt to delay matters.
The costs were £2,600, which the Court considered disproportionate given the amount of the claim and that it was allocated to the small claims track. Further, fixed costs would normally be appropriate pursuant to CPR rule 45.4. Nonetheless, DJ Trent held that the Court could exercise its jurisdiction under CPR 44.3, and so doing held that fixed costs were not appropriate. He held that the costs should be awarded on a indemnity basis.
Many thanks to Mr Issacs of 3 Paper Buildings, Temple, London for providing notes in respect of this case.