Dumford Trading AG v OAO Atlantrybflot

The Court of Appeal reserved the costs of the proceedings and the appeal for determination by the Commercial Court judge, including whether the Gomba rule or a rule based on section 51 should apply. A conditional order was refused because the applicable practice-direction requirements were not satisfied. Security for costs was to remain in court pending a Part 24 application, subject to the claimant pursuing that application timeously. Any jurisdiction challenge was to be dealt with before the Commercial Court considered the defence or the Part 24 application.

The defendant appealed from proceedings in the Commercial Court. The Court of Appeal dealt with consequential procedural matters, including costs, an application for a conditional order, security for costs, the proposed Part 24 application, the possible commencement of a second action, and a challenge to jurisdiction.

The central issues concerned the appropriate allocation of costs and the proper sequence for resolving the jurisdiction challenge and any application for summary judgment.

1. Costs. The costs below, the costs of the appeal, and the costs incurred before Lord Justice Clarke were reserved. The Commercial Court judge, when deciding the case, was to determine whether the Gomba rule applied or whether another rule drawing on section 51 should govern the costs.
2. Conditional order. Leave to appeal to the House of Lords was refused. The application for a conditional order was also refused because the requirements of the relevant practice direction were not satisfied.
3. Security and Part 24 application. Money paid as security for costs was to remain in court pending the claimant’s Part 24 application, on the claimant’s undertaking to pursue that application timeously. The judge hearing the application was to determine whether any set-off was appropriate.
4. Case management. The two actions were to be listed together if the defendant brought a second action. No order was made prescribing the timing of the defence. Any challenge to jurisdiction was to be pursued before the Commercial Court judge and, logically, determined before other steps. No separate order for costs was made in respect of the hearing; those costs were to form part of the costs of the appeal.

• Court of Appeal (Civil Division): dealt with the appeal and consequential procedural applications. Costs were reserved, leave to appeal to the House of Lords was refused, the conditional-order application was refused, and directions were given concerning security, jurisdiction, listing and the proposed Part 24 application.