“ unhappily as a consequence of the polarised position of the parties the matter has been heard over a period of five days in the High Court and evidence on Spanish law has been filed by no less than four experts (with the husbands expert flying over from Spain to give oral evidence). In addition the husband has had both English and Spanish lawyers to advise him. The costs are now in excess of£300,000 ”
“Under the new rules the court will only have power to make a costs order in ancillary relief proceedings when this is justified by the litigation conduct of one of the parties (see new rule 2.71 of theFamily Proceedings Rules 1991 .) When determining whether and how to exercise this power the court will be required to take into account the list of factors set out in the rules. The court will no longer be able to take into account any offers to settle expressed to be “without prejudice” or “without prejudice save as to costs” in deciding what, if any, costs orders to make. 3…………………. 4 Parties who intend to seek a costs order against the other party in the proceedings to which rule 2.712 of theFamily Proceedings Rules 1991 applies should ordinarily make this plain in open correspondence or in a skeleton argument before the date of the hearing”
“19. I must reflect that time taken upon a particular issue in oral evidence does not necessarily affect the time and money spent upon it in research and in preparation and I have in mind too that if I make an order issue by issue there will undoubtedly be disproportionate time taken up at the assessment stage in arguing as to whether this or that preparation or evidence went wholly, in part or not at all to one issue or another. I prefer to mark the degree, which I have accepted, to which time and money was spent unnecessarily or disproportionately by awarding the claimants only a proportion of their costs of the liability hearing. I hold the appropriate proportion to be 75%.”
"(6) The orders which the court may make under this rule [rule 44.3] include an order that a party must pay – (f) costs relating only to a distinct part of the proceedings." [21] The first question, therefore, is whether the judge was entitled to proceed on the basis that this was a case which called for an issue based costs order. In my view, this case cried out for such an order. The issues which were fought and lost by Mr Kotonou included issues which, in the judge's view, should never have been raised at all: including issues on which the allegation of representation was dismissed on the basis that the representation had simply not been made. I would have been surprised if a judge, hearing a trial of this nature, had not reached a conclusion that this was an appropriate case for an issue based order. At the least, it is impossible to hold that this judge's conclusion that that was the correct approach was flawed in principle. [22]CPR 44.3 (7) requires that, where the court would otherwise consider making an order under paragraph (6)(f), it must instead, if practicable, make an order under paragraphs (6)(a) or (c) instead. Paragraph (6)(f), as I have indicated, is the power to make an issue-based costs order. Paragraph (6)(a) enables the court to make an order that one party pay a proportion of another party's costs. It is unnecessary I think to refer to paragraph (6)(c) in detail. The thinking behind rules (6)(f) and (7) is not difficult to understand. Separate assessments of the costs relating to individual issues are likely to be complex and expensive: difficult to carry out in circumstances in which there are common factors which spread over a number of issues. How should the costs of those common elements be apportioned between the separate issues? A more convenient method, while keeping in mind the issue based approach, is to assess all the costs together and then apply a proportion which reflects the fact that one party has won on some issues and has lost on the other issues. That is what the Costs Rules require. [23]At paragraph 21 of his judgment this judge recognised that it would be difficult accurately to identify the separate costs occasioned by the separate issues. That is exactly the sort of case which the rule making body had in mind when it provided in paragraph (7) that, if practicable, the court must make an order under paragraph (6)(a). The judge indicated, in the first two sentences of paragraph 22 of his judgment, that he had decided to make a split order -- which in context meant an issue-based order as appeared from the last sentence of paragraph 20 -- but, to translate that split into simple percentages of the overall costs. That would obviate the need for a detailed assessment of the separate costs of each issue. That, as it seems to me, is not only a proper approach: it is the approach which is positively required by the Rules. [24]The third question, then, was what proportions should be adopted in order to reflect the fact that the bank had won on some issues and Mr Kotonou on one of the issues; while recognising that overall Mr Kotonou was successful. The judge said this at paragraph 22: "