HIGH COURT GIVES GUIDANCE ON COST CAPPING ORDERS

The High Court recently quashed a negative screening opinion relating to a proposal to erect flood lights at a sports club:  R (Warley) v Wealden DC [2011] All ER D 88.  The Court also considered two matters of interest in relation to costs capping orders.  First, whether the cap stated on an order was to be inclusive or exclusive of VAT.  The Court decided as a matter of principle that the cap was to be read as excluding VAT, so that the overall cost award could legitimately exceed the cost cap once VAT was added.  Secondly, whether a percentage reduction in costs awarded to the party subject to the costs cap was to be applied to the base costs or the costs as capped.  Here the court decided that the reduction was to be applied to the base costs, so that the costs cap only became relevant once the reduction on base costs had taken place.  James Pereira represented the successful claimant, instructed by Paul Stookes of Richard Buxton Solicitors.