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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Speciality Produce Ltd, R (On the Application Of) v The Secretary of State for Environment, Food And Rural Affairs [2014] EWCA Civ 225 (07 March 2014) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2014/225.html Cite as: [2014] EWCA Civ 225, [2014] CP Rep 29 |
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ON APPEAL FROM THE HIGH COURT OF JUSTICE
CHANCERY DIVISION
VOS J
HC13E00089
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE PATTEN
and
LORD JUSTICE CHRISTOPHER CLARKE
____________________
THE QUEEN ON THE APPLICATION OF SPECIALITY PRODUCE LIMITED |
Appellant |
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- and - |
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THE SECRETARY OF STATE FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS |
Respondent |
____________________
George Peretz (instructed by The Treasury Solicitor) for the Respondent
Hearing date : 27 February 2014
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Crown Copyright ©
Lord Justice Patten :
"In relation to SPL, our primary concerns relate to the route to market taken by products marketed via individual member owned marketing agents. It would appear in these cases that although product moves through the PO's marketing desk it is in reality simply 'sold' back to the member for onward marketing to the final consumer ….. Our main concerns at this time are the relationship between S&A Group Holdings Ltd, S&A Produce (UK) Ltd, S&A Soft Fruits Ltd and Moneypeak Ltd and the route to market taken by all produce marketed via the PO. In essence we need to establish whether the PO is marketing its members' produce in a meaningful sense or if the PO is an additional step in the chain."
"1. Ground 1 raises the difficult question of the circumstances, if any, in which a public authority may be barred from relying on grounds upon which it could have relied and/or which it abandoned in an earlier judicial review about the same matter. On the facts (which can be established without the need for oral evidence), this ground is clearly arguable. It cannot be determined by the CAP support schemes appeal procedure. Even if it could be, a panel of laymen is not qualified to determine it.
2. The matters relied on in support of ground 1 could give rise to a substantive legitimate expectation challenge. If that has been considered and rejected by the claimant's advisers, well and good. If not, ground 1 should be amended so as to put that ground of challenge expressly in issue.
3. As the summary grounds of defence make clear, there is no live issue of law between the parties on ground 2. The only issues are factual. They are best disposed of by the appeals procedure. There is no reason why that informal process should not take place concurrently with this claim."
"51. In many cases which are settled on terms which do not accord with the relief which the claimant has sought, the court will normally be unable decide who has won, and therefore will not make any order for costs. However, in some cases, the court may be able to form a tolerably clear view without much effort. In a number of such cases, the court may well be assisted by considering whether it is reasonably clear from the available material whether one party would have won if the case had proceeded to trial. If, for instance, it is clear that the claimant would have won, that would lend considerable support to his argument that the terms of settlement represent success such that he should be awarded his costs. An example of such a case is Brawley v Marczinski, [2002] EWCA Civ 756, [2003] 1 WLR 813 where the court could determine, without too much effort, who would have won, and then took that into account when awarding costs.
The position where cases settle in the Administrative Court
52. The question which then arises is whether the principles discussed in the preceding section of this judgment should apply in the Administrative Court, just as much as to other parts of the civil justice system: in particular, where the defendants accept that the claimant is entitled to all, or substantially all, the relief which he claims, should the defendants pay his costs, unless they can show good reason to the contrary? At least on the face of it, the fact that a claim is a public law claim should make no difference. Such claims are subject to the CPR, and a successful claimant who has brought such a claim is just as much entitled to his costs as he would be if it had been a private law claims. The court's duty to protect individuals from being wronged by the state, whether national or local government, is every bit as vital as its duty to enable them to vindicate their private law rights. And the fact that the defendants are public bodies should make no difference, as Pill LJ explained in Bahta at para 60. However, a number of points could be raised as to why defendants who concede claims in the Administrative Court should be less at risk on costs than those who concede in ordinary civil actions.
…..
58. Accordingly, I conclude that the position should be no different for litigation in the Administrative Court from what it is in general civil litigation. In that connection, at any rate at first sight, there may appear to be a degree of tension between this conclusion, which applies the 'general rule' in CPR 44.3(2)(a), and the fifth guideline in Boxall, at least in a case where the settlement involves the defendants effectively conceding that the claimant is entitled to the relief which he seeks. In such a case, the claimant is almost always the successful party, and should therefore, at least prima facie, be entitled to his costs, whereas the fifth guideline seems to suggest that the default position is that there should be no order for costs. Similarly, there could be said to be a degree of tension between what was said in paras 63-5, and the view expressed in para 66, of Bahta .
59. In my view, however, on closer analysis, there is no inconsistency in either case, essentially for reasons already discussed. Where, as happened in Bahta, a claimant obtains all the relief which he seeks, whether by consent or after a contested hearing, he is undoubtedly the successful party, who is entitled to all his costs, unless there is a good reason to the contrary. However, where the claimant obtains only some of the relief which he is seeking (either by consent or after a contested trial), as in Boxall and Scott, the position on costs is obviously more nuanced. Thus, as in those two cases, there may be an argument as to which party was more 'successful' (in the light of the relief which was sought and not obtained), or, even if the claimant is accepted to be the successful party, there may be an argument as to whether the importance of the issue, or costs relating to the issue, on which he failed.
60. Thus, in Administrative Court cases, just as in other civil litigation, particularly where a claim has been settled, there is, in my view, a sharp difference between (i) a case where a claimant has been wholly successful whether following a contested hearing or pursuant to a settlement, and (ii) a case where he has only succeeded in part following a contested hearing, or pursuant to a settlement, and (iii) a case where there has been some compromise which does not actually reflect the claimant's claims. While in every case, the allocation of costs will depend on the specific facts, there are some points which can be made about these different types of case.
61. In case (i), it is hard to see why the claimant should not recover all his costs, unless there is some good reason to the contrary. Whether pursuant to judgment following a contested hearing, or by virtue of a settlement, the claimant can, at least absent special circumstances, say that he has been vindicated, and, as the successful party, that he should recover his costs. In the latter case, the defendants can no doubt say that they were realistic in settling, and should not be penalised in costs, but the answer to that point is that the defendants should, on that basis, have settled before the proceedings were issued: that is one of the main points of the pre-action protocols. Ultimately, it seems to me that Bahta was decided on this basis.
62. In case (ii), when deciding how to allocate liability for costs after a trial, the court will normally determine questions such as how reasonable the claimant was in pursuing the unsuccessful claim, how important it was compared with the successful claim, and how much the costs were increased as a result of the claimant pursuing the unsuccessful claim. Given that there will have been a hearing, the court will be in a reasonably good position to make findings on such questions. However, where there has been a settlement, the court will, at least normally, be in a significantly worse position to make findings on such issues than where the case has been fought out. In many such cases, the court will be able to form a view as to the appropriate costs order based on such issues; in other cases, it will be much more difficult. I would accept the argument that, where the parties have settled the claimant's substantive claims on the basis that he succeeds in part, but only in part, there is often much to be said for concluding that there is no order for costs. That I think was the approach adopted in Scott. However, where there is not a clear winner, so much would depend on the particular facts. In some such cases, it may help to consider who would have won if the matter had proceeded to trial, as, if it is tolerably clear, it may, for instance support or undermine the contention that one of the two claims was stronger than the other. Boxall appears to have been such case.
63. In case (iii), the court is often unable to gauge whether there is a successful party in any respect, and, if so, who it is. In such cases, therefore, there is an even more powerful argument that the default position should be no order for costs. However, in some such cases, it may well be sensible to look at the underlying claims and inquire whether it was tolerably clear who would have won if the matter had not settled. If it is, then that may well strongly support the contention that the party who would have won did better out of the settlement, and therefore did win."
"36. What effectively has happened here is that SPL has backed two perfectly proper horses. The first horse was the abuse of process claim in the judicial review proceedings, and the second horse was the statutory appeals process. Both were properly brought. SPL was entitled to make both claims and to pursue both claims in parallel, as Mitting J held.
37. The question is whether, if one horse finishes first and entitles the applicant to the relief that it would have obtained had the other horse finished first, the applicant can seek the costs of both sets of proceedings. This is not a situation that is presaged in Lord Neuberger's judgment in R(M) v Croydon London Borough Council. This is a slightly unusual situation, and neither counsel has been able to find any authority which bears directly on it. But it may be quite common in judicial review situations for there to be two parallel processes leading to the identical relief.
38. In my judgment, the argument advanced by Mr Robertson that, simply because he obtained the identical relief from the statutory appeals procedure, he is entitled to his costs of a judicial review claim in respect of a quite different argument about abuse of process is wrong. The question of whether SPL is entitled to its costs of the judicial review process is to be determined by the principles set out in Part 44.3 and in R(M) v Croydon London Borough Council.
39. In this case, unless it is possible for the court to say that SPL would have won its abuse of process ground without wasting undue judicial time, the normal default order, as Lord Neuberger makes clear, is no order as to costs. Nor does it benefit Mr Robertson to be able to say that the Secretary of State has effectively brought about the unfortunate position in which SPL is deprived of its costs. In my judgment, no criticism can properly be levelled at the Secretary of State for taking the step she took in deciding the statutory appeal quickly so as effectively to pre-empt the abuse of process decision. It may be that she did so because she thought that her chances of succeeding on the abuse of process argument were less than certain. But that, in my judgment, does not matter. What matters is whether or not I can say that SPL would have succeeded in its abuse of process claim. That is something I cannot say on the evidence before me, as is common ground between the parties.
40. In these circumstances, though SPL can quite reasonably think that they have been deprived of the opportunity to argue their points, which they might well have won, it does not seem to me appropriate that they should be awarded their costs. They took a belt-and-braces approach to the litigation. They obviously regarded it as extremely important that they obtained the relief they wanted, by whichever route, as quickly as possible. For that they had to hazard some costs, as they said in another context they were prepared to do. Unfortunately for them (to mix my metaphors), the horse that they backed, which did not have very good odds, came home first. In those circumstances they cannot, unfortunately, claim the winnings for the horse that never came home because it did not need to."
"In a case where there has been a judgment after trial, the judge may be expected to be in a position to decide whether one party or the other has been successful overall; whether one party or the other has been successful on discrete issues; whether the fact that the party who has been successful overall but unsuccessful on some issues calls for an order which reflects his lack of success on those issues; and whether - having regard to all the circumstances (including conduct) as CPR 44.3(4) requires – the order for costs should be limited in one or more of the respects set out in CPR 44.3(6). But where there has been no trial – or no judgment – the judge may well not be in a position to reach a decision on those matters. He will not be in a position to decide those matters if they turn on facts which have not been agreed or determined. In such a case he should accept that the right course is to decide that he should not make an order about costs. As the arguments on the present appeal demonstrate, it does the parties no service if the judge – in a laudable attempt to assist them to resolve their dispute – makes an order about costs which he is not really in a position to make."
Lord Justice Christopher Clarke :
Lord Justice Longmore :