“The only issue between the parties in relation to those costs is whether their assessment should be on the indemnity basis (as the Applicants contend) or the standard basis (as the SFO contends.)”
“Subject to exceptions not relevant to this case, the costs of an application in the High Court are governed by the CPR, even when arising from a criminal case (CPR rule 2.1 (1)).”
“The relevant principles are uncontroversial. The general rule is that costs follow the event (CPR rule 44.2 (2)(a)); and, in the case of the VB application, the SFO accept that there are no circumstances that would warrant any different order.”
“It is important not to lose sight of the basic tenets of common law reasoning that every judgment must be read in context, by reference to what was in issue in the case, and that it is only the ratio of the decision which establishes a precedent and not obiter dicta.”
“Clearly, save in exceptional cases, prosecutions and appeals in criminal cases should be and will be subject to the criminal costs regime. However, the present case is unusual. The prosecution was brought by the respondent in order to protect a very substantial profit stream … It was treated by both parties as a test case, involving substantial legal resources … Both hearings were conducted in a manner indistinguishable from a hearing in the Chancery Division or before the Civil Division of the Court of Appeal in which substantial sums are in issue. This was very far from being a typical appeal against conviction for a summary offence …”
“Even if I am wrong in my earlier conclusion that section 51 of the 1981 Act is not concerned with the costs of proceedings from which an appeal is brought to the High Court, the terms of section 51(1) and (5) provide a further negation of the power which the appellants asked the Divisional Court to exercise in this case. That is because the statutory provisions contained in the 1985 Act govern the circumstances in which an award of costs can be made in criminal proceedings against a non-party … [34] The judicial review proceedings, whilst technically civil proceedings, are nonetheless a criminal cause or matter …”
“… in my view the Court in Murphy was saying no more than this: Parliament has enacted a framework for the determination of costs in civil cases and it has enacted a framework for the determination of costs in criminal cases. Each identifies the orders which may be made and the statutory conditions which require to be satisfied if they are to be made. Parliament intended that costs would only be awarded in a criminal cause or matter where such an award is in accordance with the statutory provisions applicable to such causes or matters. The proceedings do not lose their criminal character when they are subject of an appeal or a claim for judicial review in the High Court, and nor do they for the purposes of the determination of costs of such proceedings. So it would only be in exceptional circumstances that a court would use its powers under section 51(1) of the Senior Courts Act to make an award of costs in a criminal case which would not be available under the provisions applicable to criminal cases.”
“It is not sufficient for the underlying proceeding to relate to subject-matter which might be described as “criminal in a broad sense; the proceeding itself has to be criminal in nature.”
“… for a proceeding to qualify as a “criminal cause or matter” a person has to be placed at jeopardy of criminal trial and punishment as the direct outcome of that proceeding, such that it was possible to identify “the defendant” and “the prosecutor” in respect of it.”
“The determination of an application for costs by either party at the end of an appeal by way of case stated or a claim for judicial review is an inherent part of the exercise of the jurisdiction. There would be a startling consequence if the appellants’ submissions were correct. Many appeals by way of case stated or claims for judicial review which are criminal causes or matters result not only in an order determining the substance of the matter but also an order in relation to costs. There could not sensibly be different appeal routes for those two aspects of the same order of the High Court.”
“Nothing in sub-section (1) shall alter the practice in any criminal cause or matter, or in bankruptcy.”
“The prior question is whether there are exceptional circumstances such that the civil costs regime should be applied to a criminal cause or matter. If the conclusion is that there are not, the criminal regime applies and costs should be awarded if it is in accordance with that regime to do so. If, as in the present case, the provisions of the criminal costs regime on which the applicant would have wished to rely does not provide for the award of costs against a party in the High Court it would be contrary to the intention of Parliament to treat this as an exceptional circumstance which justified awarding costs undersection 51(1) Senior Courts Act 1981 given the terms of section 51(5) and given that section 19(1) reflects the intention of Parliament that costs should not be awarded against a party to a criminal cause in the High Court.”
“It may be said that there is a lacuna in the criminal regime in relation to costs in a criminal cause heard in the High Court. It is not for us to fill that lacuna by an unjustified extension of a very narrow jurisdiction.”