The Court of Appeal has awarded the owners of the M/V “Lady Magda” the costs of an unsuccessful appeal brought by Atlas Baltic OÜ, described in the judgment as the Agents. It also affirmed the High Court’s costs order and granted a limited stay on enforcement and payment of money lodged as security.
The judgment, delivered by Mr Justice Maurice Collins on 18 February 2021, dealt with costs following the court’s earlier decision of 7 January 2021, which dismissed the Agents’ appeal. The court decided the costs issue on written submissions, without a further hearing, after the Owners had an opportunity to respond.
The Owners were “entirely successful” in the appeal and were presumptively entitled to their costs under section 169(1) of the Legal Services Regulation Act 2015. The Agents argued that it had been reasonable to bring the appeal and that this justified a different costs order. The court rejected that argument, saying the statutory provision did not replace the fundamental principles governing costs with a general test of reasonableness. The appeal was not well-founded and no issue had been decided in the Agents’ favour.
The court also noted that the appeal raised essentially the same issues as an earlier Court of Appeal case, The Almirante Storni, decided in March 2020. The Supreme Court refused leave to appeal that decision in June 2020. The Agents continued with their appeal, despite a September 2020 letter from the Owners’ solicitors referring to The Almirante Storni and suggesting withdrawal. The court said those circumstances undermined the claim that continuing the appeal was reasonable.
The court found no basis to depart from the normal costs rules because of the general importance of the issues. It ordered that the Owners’ costs include additional costs incurred addressing the costs issue. The costs were to be adjudicated if the parties could not agree.
The Agents also sought a stay of the costs orders and of an order to pay out to the Owners money lodged with the court as security. The court granted a stay on entry or execution of the High Court and Court of Appeal costs orders for 21 days from perfection of the Court of Appeal order. If the Agents apply to the Supreme Court for leave to appeal within that period, the stay continues until that application is determined; if leave is granted, it continues until the appeal is determined, subject to any different Supreme Court order. The Owners may prepare bills of costs and seek adjudication during the stay, but cannot take further steps. The payment-out order for the security is stayed on the same basis.