“At the conclusion of this hearing, I indicated that I would provide a second written Judgment. This I now do. I am circulating this Judgment in draft for editorial and just as importantly arithmetical correction, and to allow the parties to comment on the calculation of applicable VAT, interest and costs as a result of my quantum findings.” ii) [53] in these terms: “Bearing in mind that a substantial proportion of the items to be charged are zero rated for VAT purposes and some elements of the Counterclaim have been disallowed or secondary options accepted in preference to D's primary case, I calculate that VAT recoverable by D is f.5,670.72. VAT is recoverable on the relevant aspects of the counterclaim because they are charges for the provision of chargeable services that are not zero rated.” iii) [57] – [59] which said: [57] “Costs should follow the event. C should pay the costs of the action on the standard basis subject to detailed assessment if not agreed. [58] This Judgment is circulated in draft for editorial and arithmetical correction only. I will receive written suggestions on these matters and on contractual interest and costs (strictly limited to 4 pages of A'4) and sent electronically (marked for my attention) to reach my clerk by no later than 4.00pm on Friday26 July 2024 at mohamed.bentounes@Justice.gov.uk [59] On receipt of such suggestions or submissions I will consider whether a further ‘consequentials’ hearing is necessary.”
“The Claimant submits that the Defendant would not pay VAT in relation to the new build project which the counterclaim is predicated upon. In any event, the Defendant has not evidenced that it is currently VAT registered and therefore is entitled to invoice now for sums in respect of VAT.”
“Accordingly, in all the circumstances, the Claimant submits that the Defendant should not be awarded any costs. At most, the costs which flow from the draft judgement ought to be limited to those litigant in person costs for the trial period that are proved at any assessment. Crucially, the Claimant submits that in any event the overall costs if assessed then ought then to be reduced by at least 75% to reflect the Defendant's failure on the vast majority of the counterclaim and its bullying conduct as found by HH Judge Roberts. Given these factors, plus the lack of costs budgeting and the Claimant's previous capacity issues, it is submitted that the Honourable Court should be cautious if awarding costs to the Defendant in this protracted litigation.”
“Thank you. You must forgive a little consternation. I implored the Claimant at both PTRs and at the end of Phase One to secure legal representation - it was entirely and determinedly his choice not to do so and that was his right. Proportionality dictates that I cannot devote even yet more time now to matters that might have been previously raised. a. VAT is either payable or it is not on chargeable items. If D is not registered for VAT, this is only part of the picture. I am not registered for VAT (now) but I must still account for it on invoices for chargeable services. b. There is no more to be said about contractual interest. The Judgment will be handed down as indicated. I am sure you will all manage with the Directions already given.” a. VAT is either payable or it is not on chargeable items. If D is not registered for VAT, this is only part of the picture. I am not registered for VAT (now) but I must still account for it on invoices for chargeable services. b. There is no more to be said about contractual interest. I am sure you will all manage with the Directions already given.”
“This Judgment follows-on from that of10 August 2023 and should not be taken in isolation.”
"The movement of the flank wall of No 17 was probably the result of lateral ground pressure and probably also groundwater pressure applied against the 'back' of the underpinning, following excavation of the No 17A basement ... This resulted in 216 overturning (and possibly some sliding) of the underpinning and base of the masonry wall." [29] As a result of answers to questions posed by D [583] the SJE was unable to express an opinion about groundwater. It is, in my judgment, more probable than not that the failure of the underpinning was due to lateral ground pressure. [30] I am satisfied that within the intended scope of the contract between C and D it was the parties' common intention [91] that in addition to the building of a new property at 17A a basement was to be dugout underneath 17. [31] This is reflected in D's primary position in this action namely that the starting point of the project was to underpin the flank wall between 17 and l7A and to cut the ground on the 17 side of the flank wall at 45 degrees to release the underpinning from lateral pressure from the soil and any groundwater and that C failed to provide access to l7 for such works. I accept the accuracy of this statement. [32] The SJE concludes [503]: "
"I am not satisfied that items 16 and 35 are recoverable. The fees and costs of labour for the temporary supports were in respect of what the SJE describes as ineffective measures [522]. I have not seen sufficient evidence to justify an inference that such measures were justified in the short term before the more robust "
“.... The primary and effective cause of the failed underpinning was C's refusal of access.”