Gibraltar Residential Properties Ltd v Gibralcon 2004 SA (Costs)

Where costs follow the event and are assessed on the standard basis, the court scrutinises each claimed item for reasonableness and proportionality. It may reduce time spent on attendances, preparation, work arising from internal allocation of tasks, and hearing-related work where the claim is excessive or where it would be unreasonable for the paying party to bear the full amount. The assessment remains fact-sensitive. Time spent travelling, waiting or delivering documents may be recoverable where the circumstances reasonably required it.

The judgment concerned the assessment of costs after the dismissal of two applications by Gibralcon 2004 SA, which had sought declarations that the English court lacked jurisdiction because of Spanish insolvency proceedings.

The parties agreed that costs should follow the event. The issue was the amount recoverable by Gibraltar Residential Properties Limited on the standard basis. GRPL claimed £90,686.39. The court considered five disputed categories of solicitor costs.

1. Basis of assessment. Costs were to follow the event and were assessed on the standard basis. The court rejected the submission that GRPL should recover 100 per cent of its costs.
2. Attendances on opponents. In a two-party case, the court expected the hours spent on attendances on opponents to be broadly the same for each side. The item was reduced by £667.
3. Attendances on counsel. The claimed 46.3 hours, including 40.3 hours by the partner, was excessive when compared with leading counsel’s unchallenged preparation and drafting fees. Although the time was genuinely spent, a reduction of 10 hours was required to reach a reasonable and proportionate figure. The reduction was £2,900.
4. Other work. It was unreasonable for the paying party to bear all additional time caused by instructing a solicitor to assist while the relevant partner was on holiday. The item was reduced by £1,160.
5. Attendance at the hearing. A reduction to five hours would be too severe because the item included travelling and post-judgment follow-up. A reduction of two hours for both the partner and assisting solicitor was made, totalling £930.
6. Travelling and waiting. The cost of sending a solicitor to deliver a supplemental bundle personally was allowed because the delivery was said to have been delayed by late provision of documents.
7. The total reduction was £5,657. GRPL’s costs were assessed at £85,030, payable by Gibralcon within 21 days after issue of the judgment.