The Supreme Court has ordered Ace Autobody Limited to pay Motorpark’s costs of a successful appeal over a claimed 10-year lease, while ruling that each side must bear its own costs for the earlier High Court and Court of Appeal proceedings.
The costs ruling was delivered on 23 March 2026 following the Supreme Court’s substantive judgment of 18 February.
Ace had sued Motorpark Limited, Brecol Limited and JDM Automotive Limited claiming entitlement to a 10-year lease of disputed commercial premises. Motorpark disputed that claim and counterclaimed for a declaration that Ace had no estate, interest or title in the premises and should vacate.
The High Court rejected Ace’s claim to a 10-year lease but also rejected Motorpark’s position that Ace was merely a licensee. It instead found that Ace occupied the premises as a contractual tenant from year to year.
Ace successfully appealed its lease claim to the Court of Appeal, while Motorpark’s cross-appeal against the finding of a yearly tenancy was dismissed. The Supreme Court later allowed Motorpark’s appeal on the 10-year lease issue. Motorpark did not pursue any further challenge to the yearly-tenancy finding.
In its costs ruling, the Supreme Court held that Motorpark had been entirely successful in the appeal before it and was therefore entitled to those costs under the ordinary rule that costs follow the event.
The position in the lower courts was different. The court said Ace had obtained something of real value from the litigation because the yearly-tenancy finding allowed it to remain in possession and formed the basis of an application for a new tenancy under the Landlord and Tenant (Amendment) Act 1980.
The Supreme Court therefore set aside the Court of Appeal’s costs order, directed Ace to pay Motorpark’s Supreme Court appeal costs, and made no costs order for the High Court or Court of Appeal proceedings.