Dugmore v Swansea National Health Trust & Anor

The Court held that, absent special circumstances, costs should follow the event and not be apportioned by reference to individual issues. An issue‑based costs order is not appropriate merely because an issue occupied substantial trial time. Permission to appeal to the House of Lords was refused.

The appellant appealed from Cardiff County Court where a seven‑day trial produced mixed findings against two NHS Trust respondents. The Court of Appeal considered whether costs should be apportioned because the claimant lost on a factual issue (the date of knowledge) which occupied substantial trial time. The court reviewed principles governing issue‑based costs and the exercise of permission to appeal to the House of Lords. The central issue was whether separate orders for costs in relation to that factual issue were appropriate.

1. Outcome: The appeal against the first respondent (Swansea NHS Trust) was allowed. The appeal against the second respondent was dismissed. Permission to appeal to the House of Lords was refused.
2. The court refused to make an issue‑based costs order. It emphasised that costs normally follow the event and that there are no hard and fast rules for apportioning costs by issue.
3. The mere fact that a particular issue consumed substantial trial time does not by itself justify a separate costs order for that issue. The court must assess whether the issue was sufficiently distinct and separable to warrant special treatment.
4. Although the point on statutory liability was of some importance and suitable for the House of Lords to consider, the court considered it for the purposes of permission. It exercised a discretion and refused permission to appeal to the House of Lords.
5. Practical direction: as the first respondent lost on liability, it was ordered to pay all the appellant's costs both in the Court of Appeal and below. The second respondent was to recover its costs and the prior costs order in its favour was left undisturbed.

• Court of Appeal (Civil Division): appeal allowed against the first respondent and dismissed against the second respondent; permission to appeal to the House of Lords refused.
• Cardiff County Court: trial judge His Honour Judge Masterman (seven‑day trial). The Court of Appeal disposed of costs orders made below by directing that the first respondent pay the appellant's costs both here and below and that the second respondent recover its costs (the order below undisturbed as to the second respondent).