Cases

McPhilemy v Times Newspapers Ltd (No.4)

Held

(1) The judge's exercise of discretion on the issue of indemnity costs was fundamentally flawed. Such an award was not punitive in nature and did not necessarily imply any condemnation of a defendant's conduct. (2) The purpose of indemnity costs was to redress the injustice of costs which would otherwise accrue to a successful claimant for having had to fight a case for longer than was reasonably necessary. There was no injustice in an order for indemnity costs being made. (3) The Claimant should have interest on his costs at the rate of 4% above base, from the date that those costs were incurred until judgment, and at the judgment rate thereafter. Appeal allowed. An order for indemnity costs of the appeal would also be justified, given the terms of the judgment in the substantive appeal (McPhilemy v Times Newspapers Ltd (No.3)).

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